5 Best Roth IRA Stocks to Buy and Hold for Long Term

4. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 56

Lockheed Martin Corporation (NYSE:LMT) is an American aerospace company that specializes in defense and information security. In July, the US Air Force successfully tested the company’s hypersonic missile off the California coast, which shows progress in the country’s hypersonic weapons development.

In Q1 2022, Lockheed Martin Corporation (NYSE:LMT) reported $1.4 billion in cash from operations and $1.1 billion in free cash flow. The company paid $767 million in dividends in Q1, which shows that its payments are well-covered by its assets. Lockheed Martin Corporation (NYSE:LMT) currently offers a quarterly payout of $2.80 per share, with a yield of 2.79%, as of July 15. The company has a solid dividend history, paying consistent dividends to shareholders since 1996. It maintains a 19-year track record of consecutive dividend growth.

In May, Argus lifted its price target on Lockheed Martin Corporation (NYSE:LMT) to $500 with a Buy rating on the shares. The firm appreciated the company’s consistent results over the years.

Insider Monkey’s Q1 2022 database shows that Lockheed Martin Corporation (NYSE:LMT) was popular among elite funds, as the company was a part of 56 hedge fund portfolios, up from 42 in the previous quarter. These hedge funds hold collective stakes in the company worth over $2.4 billion.

Ariel Investments mentioned Lockheed Martin Corporation (NYSE:LMT) in its Q3 2021 investor letter. Here is what the firm has to say:

“Conversely, leading global defense contractor Lockheed Martin Corporation (LMT) was the greatest detractor over the trailing one-year period due to pared back F-35 delivery plans and weaker than expected 2022 sales guidance. Nonetheless, we remain confident in LMT’s positioning as they continue to secure a steady stream of lucrative contracts and benefit from a sizeable backlog. Looking ahead, management is focused on driving innovation, underscored by the pending acquisition of Aerojet Rocketdyne enabling vertical integration in propulsion systems for space and missile defense. At today’s valuation, LMT is currently trading at a 32% discount to our estimate of private market value.”