Make way for Lockheed Martin (LMT), which is celebrating its 10th straight year of dividend increases.
Lockheed is a defense industry giant, dealing primarily in security infrastructure and aerospace. The company is primarily engaged in U.S. government work, and while it has plenty of commercial applications to keep it busy, the fact that national defense is always going to be a priority can make you sleep well at night … well, at least as far as LMT’s prospects are concerned.
Despite defense cutbacks, Lockheed has managed to slowly but surely grow revenues by about 7.5% over the past five years to 2012’s $47 billion. That helped generate $2.7 billion in free cash flow, which covered its dividend more than two times over. Best of all for current buyers, LMT is attractively priced at just more than 12 times earnings.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.