5 Best Industrial Dividend Stocks For 2021

3. Lockheed Martin Corporation (NYSE: LMT)

Dividend Yield: 2.14%

Formed by the merger of Lockheed Corporation with Martin Marietta in 1995, the Maryland, USA-headquartered LMT is a global security and aerospace company that employs around 110,000 people worldwide. The company is primarily engaged in the research, design, development, manufacturing, integration and sustainment of advanced technology systems, products and services. LMT’s four main business segments include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

LMT has exceeded earnings estimate consensus in the recent quarters and its profit. The trailing 12-month PE ratio of 13.62 versus the S&P 500 PE of 27.48 makes LMT more attractive on absolute basis. Additionally,  its PE compares favorably with the Zacks Aerospace sector’s 12-month trailing PE ratio of 53.70 making it cheaper than its peers on relative basis as well. LMT is a Fortune 500 name.

The stock is up 4.12% over the last 12 months.

Ariel Investments, in their Q4 2020 investor letter, emphasized their Lockheed Martin Corporation (NYSE: LMT) position. Here is what Ariel Investments has to say about Lockheed Martin Corporation in their Q4 2020 investor letter:

“Lockheed Martin Corporation declined -7% in the quarter. Generally, the market expects less defense spending under Democratic administrations. Furthermore, defense stocks are considered “safe/non-cyclicals” less harmed by the COVID-19 economic downturn and less buoyed by an economic reopening. As a result, Lockheed outperformed the market as we went into the downturn in March but underperformed as we rallied in the fall and winter.”