Lockheed Martin Stock Bolstered by Dividend Hike and $2B Buyback Boost

Lockheed Martin's stock (NYSE:LMT) is likely to garner increased attention following the announcement of a 5% increase in its quarterly dividend and the authorization of an additional $2 billion for its share repurchase program. This dual strategy underscores management’s confidence in the company’s financial stability and its commitment to delivering value to shareholders.

The company's board has authorized the purchase of up to an additional $2 billion of Lockheed Martin common stock under its share repurchase program, bringing the total authorization for future repurchases to approximately $9.1 billion. The timing and amount of repurchases will be at the discretion of management, adhering to regulatory guidelines. This move typically signals to the markets that the company believes its stock is undervalued, potentially leading to increased demand and upward price pressure.

Adding to the positive news, Lockheed Martin has raised its quarterly dividend by 5% to $3.45 per share, up from $3.30. The dividend is payable on December 30, 2025, to holders of record as of December 1, 2025. This marks the 23rd consecutive year of dividend increases, a testament to the company's consistent financial performance and dedication to rewarding its investors. Such consistent dividend growth often attracts income-focused investors, providing stability to the stock.

The combination of a higher dividend and an expanded share repurchase program is likely to have a positive effect on market sentiment towards Lockheed Martin, with the stock 0.44% higher in the pre-market session.