5 Best Dividend Stocks to Buy According to Cathie Wood

3. Lockheed Martin Corporation (NYSE: LMT)

Number of hedge fund holders: 50

Dividend Yield: 2.70%

Lockheed Martin Corporation (NYSE: LMT) is a Maryland-based company that deals in aerospace, arms, defense, security, and advanced technologies. It was founded in and is placed third on our list of 10 best dividend stocks to buy according to Cathie Wood. Lockheed stock has returned more than 12% to investors over the past three months. The hedge fund managed by Wood holds more than 276,000 shares in the defense company worth over $102 million, representing 0.2% of their portfolio. This holding was also disclosed to the public in the latest filing with the SEC by ARK Investment. 

When it comes to dividend payouts, Lockheed Martin Corporation (NYSE: LMT) is one of the best options in the ARK Investment portfolio. On April 21, the company declared a quarterly dividend of $2.60 per share, in line with previous. 

Out of the hedge funds being tracked by Insider Monkey, New York-based firm Arrowstreet Capital is a leading shareholder in Lockheed Martin Corporation (NYSE: LMT) with 1.5 million shares worth more than $590 million. 

In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Lockheed Martin Corporation (NYSE: LMT) was one of them. Here is what the fund said:

“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”