If you’re looking for a rock-solid investment that combines defense, aerospace, and a healthy dose of dividends, Lockheed Martin Corporation (LMT, $434.98 as of March 24, 2025) might just be the next jewel to add to your portfolio. The American aerospace and defense giant was formed from the 1995 merger of Lockheed Corporation and Martin Marietta, and today, it’s one of the top players in the global defense industry. With 121,000 employees worldwide, including a staggering 60,000 engineers and scientists, Lockheed Martin is clearly playing with the big leagues.

While recent headlines suggest a bit of turbulence—like losing the F-47 contract to Boeing (oh, snap! 😬)—don’t let the downtrend fool you. This could actually be your chance to buy in at a discount, and we’re here to explain why.

Let’s Talk Numbers: Why LMT Is a Steal 🔢

Lockheed Martin has been a consistent performer in the defense and aerospace space, and if we look at the numbers, it’s clear this company isn’t just flying under the radar.

• 2024 Net Sales: Increased by 5% to $71.0 billion – that’s some serious growth for a giant, folks! 💰

• Pre-Tax Losses: Yes, you read that right. Lockheed recorded pre-tax losses of $1.7 billion and $2.0 billion in 2024 related to classified programs (hello, top-secret stuff! 🕵️). This impacted earnings per share by about $5.45 and $6.16, but let’s not panic yet. The company’s earnings per share still clocked in at $22.31 for 2024, proving it’s got some solid foundations.

• Cash From Operations: $7.0 billion 💵

• Free Cash Flow: $5.3 billion 💸

• Shareholder Returns: Lockheed returned a whopping $6.8 billion to shareholders through dividends and share repurchases in 2024. Talk about shareholder love! ❤️

What stands out here? Despite a few bumps in the road, Lockheed Martin is still highly profitable and continues to return significant cash to its investors. And when you see a company with a record backlog of $176.0 billion as of the end of 2024, you know the future is looking bright (or at least very well-funded!). 🌟

The F-35: Lockheed’s Ace in the Hole ✈️

Sure, Lockheed’s recent loss of the F-47 contract to Boeing might have sent shares dipping, but if you’re ready to go full throttle on this investment, the company’s F-35 program should be the main reason you’re buckling up. This fighter jet program is a global leader and one of the most advanced military aircraft on the market. With nations lining up to purchase these state-of-the-art jets, the F-35 is not just a military asset, it’s a revenue-generating powerhouse. Lockheed Martin has built a dominant position here, and with a backlog of $176 billion, they’re far from running out of orders.

A Value Play with a Dividend That Flies High 📈💸

While the F-47 loss might have caused some short-term turbulence, let’s not forget that Lockheed Martin is a value play. With a forward P/E ratio of 16.2, LMT is trading at a relatively cheap valuation compared to many other stocks in today’s market, which are inflated to the moon 🌝. If you’re looking for a solid buy opportunity in an industry that’s not going anywhere, Lockheed could be your golden ticket.

But wait, there’s more! The cherry on top? A 3.03% dividend. That’s right, while you’re sitting back and enjoying the growth, Lockheed’s paying you to stick around. And don’t forget the share buybacks—Lockheed repurchased 1.8 million shares worth $1.0 billion in Q4 of 2024. If that doesn’t tell you they’re committed to boosting shareholder value, I don’t know what does. 📈🚀

Institutional Love 💙

It’s no secret that the big players in finance love Lockheed Martin. Here’s who’s buying up the stock:

• State Street Corporation – Holding 14.84% of LMT’s shares 📊

• Vanguard Group – Scooping up 9.13% 📈

• BlackRock – Owning 7.05% 🏦

When you’ve got institutions of this caliber backing you, it’s usually a sign that the company’s got strong fundamentals. The smart money’s in, and it’s not hard to see why.

Risks to Keep in Mind ⚠️

Now, let’s not sugarcoat it: no investment is without risks. Here’s what you should be mindful of when considering LMT:

1. Stock Market Volatility: The market’s behavior can be… irrational at times, especially in a bear market 🐻. Lockheed Martin might be undervalued right now, but stocks are unpredictable, and we all know how the market can behave. 😅

2. Government Contracts: A large portion of Lockheed’s revenue comes from government contracts—especially from the U.S. government 🇺🇸. If political winds shift or new leaders take charge (no names here, folks! 😉), it could have an impact on Lockheed’s bottom line.

3. Global Tensions: With international relations being what they are, global politics and conflicts can affect defense spending. But let’s face it, defense budgets are usually recession-proof. 🌍

Despite these risks, Lockheed Martin has weathered political storms and financial ups and downs for decades. With its diverse product range and global leadership in aerospace and defense, the company is poised to keep growing—making it a solid investment in an uncertain world.

The Bottom Line 🏁

Let’s cut to the chase: Lockheed Martin is a compelling investment for anyone looking to buy into a profitable, stable company with a strong history of growth. From its dominating F-35 program to its attractive P/E ratio and generous dividend, LMT is one to consider, especially after recent share price dips.

Will Lockheed’s future be without bumps? Of course not. But with strong leadership, a massive backlog, and the support of major institutional investors, Lockheed Martin has proven it knows how to adapt and thrive. It’s an exciting time to buy into this defense and aerospace giant—especially with its current valuation making it a value play.

So, buckle up, and get ready for a ride through the skies. Lockheed Martin might just be the investment that takes your portfolio to new heights. 🚀💰