As part of my commitment to keep my readers up to date on my portfolio, I write up short posts describing my transactions. Recently, I purchased 28 shares of Lockheed Martin (LMT).
These 28 shares have a total cost basis of $2472.03, which works out to about $88.29 per share. I feel that this is a fair value, especially given currently overvalued nature of the market. LMT’s current forward dividend is $4.60 per share. So this amounts to a 5.21% starting yield. This purchase will increase my dividend stream by $128.80 per year. I feel that this is an excellent starting yield, made even more excellent by LMT’s history of dividend growth, low PE ratio, low-ish payout ratio, and the fact that the dividend discount models consider it to be undervalued.
I am a bit concerned about how recent news concerning defects in the F-35’s engines and overall reductions in military spending will affect the stock price.
Lockheed Martin Corp is the world’s largest military weapons manufacturer producing aeronautics, electronics, space, and information systems for military use. See my recent analysis of LMT for more detail.
Disclosure: I am long LMT.
Readers: What do you think of this purchase?