Lockheed Martin’s board authorized a fourth-quarter dividend of $3.60 per share, a 4.3 percent increase that extends the defense contractor’s streak of annual dividend hikes to 24 consecutive years. The dividend is payable December 31, 2026, to shareholders of record on December 1, 2026.
The setup
The Bethesda, Maryland-based company declared the higher payout on October 9, 2026. The quarterly rate rises by $0.15 from $3.45, bringing the annualized dividend to $14.40 per share. At a share price near $532, the new rate yields about 2.7 percent. The company has lifted the payout every year for more than two decades.
Key numbers for dividend investors
| Item | Detail |
|---|---|
| New quarterly dividend | $3.60 per share |
| Prior quarterly rate | $3.45 per share |
| Increase | $0.15, or 4.3 percent |
| Annualized payout | $14.40 per share |
| Indicated yield | About 2.7 percent at a share price near $532 |
| Record date | December 1, 2026 |
| Payment date | December 31, 2026 |
| Previous dividend | Ex-dividend September 1, paid September 25 |
What a $100,000 position generates
At a share price near $532, a $100,000 investment buys about 187 shares. At the new annualized rate of $14.40, those shares produce about $2,690 in dividend income per year.
The prior $3.45 quarterly rate generated about $2,580 on the same position. The increase adds roughly $112 per year for each $100,000 invested.
| Income measure | Prior rate | New rate |
|---|---|---|
| Quarterly dividend | $3.45 | $3.60 |
| Annualized dividend | $13.80 | $14.40 |
| Indicated yield | About 2.6 percent | About 2.7 percent |
| Annual income on $100,000 | About $2,580 | About $2,690 |
The table assumes a $532 share price and whole shares purchased at that level.
Why the streak matters
Twenty-four consecutive years of increases is a rare record among industrial companies. Lockheed Martin said it continues to invest in programs that are driving its backlog while maintaining what the company called its historical practice of disciplined and dynamic capital allocation.
For retirees and income-focused investors, long payout-growth streaks matter because they compound. A dividend that rises every year defends purchasing power in a way a fixed coupon cannot.
Shareholders can take the dividend in cash or reinvest it. Reinvestment compounds the payout growth: at a 2.7 percent yield with annual increases, a long holding period can build meaningful income on the original cost basis. For most United States shareholders this payout also qualifies for the lower qualified-dividend tax rate.
Risks to watch
Income investors should weigh two pressures. Ten-year Treasury yields topped 5 percent earlier this month, which makes bonds a genuine competitor to a 2.7 percent yield. Defense budgets also move with political cycles, and program setbacks can shift cash flow timing.
The dividend alone will not carry total return. Buyers at today’s prices are counting on backlog conversion into free cash flow for years to come.
Common mistakes dividend investors make
Three errors show up often in income portfolios. First, chasing the highest yield in the sector ignores payout sustainability. Second, buying only before an ex-dividend date rarely helps, because the share price adjusts on the ex-date. Third, treating any single payer as a bond substitute concentrates risk that a ladder of Treasuries would spread.
Bottom line
Lockheed Martin’s 24th consecutive increase keeps it on the short list of reliable dividend payers in the defense sector. Investors who need more current yield can find it elsewhere, but few defense names match this consistency. The December 31 payment date makes this payout a year-end cash-flow event, since the record date falls on December 1.
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