LMT has continued to be a beast of a stock. This thread started in March 2013 when the share price was in the high $80s to the low 90s. Check out the action since then:
At recent prices, it is not nearly as compelling a buy, but still a solid stock. A huge earnings jump in 2014 allowed for the last two years of very healthy dividend raises, while keeping the payout ratio in the 50 percent range. Earnings are projected to be flat to a smidge down in 2015, but the long-term trajectory is still great.
Two years ago, though, LMT presented that heavily sought-after margin of safety -- the P/E was in the 10 to 12 range and the yield was around 5 percent. Now the P/E is around 18 and the yield around 3 percent. I'm not a buyer with new money at these conditions, but I am happy to hold and continue to reinvest my dividends.
Glad I got in when I did!
At recent prices, it is not nearly as compelling a buy, but still a solid stock. A huge earnings jump in 2014 allowed for the last two years of very healthy dividend raises, while keeping the payout ratio in the 50 percent range. Earnings are projected to be flat to a smidge down in 2015, but the long-term trajectory is still great.
Two years ago, though, LMT presented that heavily sought-after margin of safety -- the P/E was in the 10 to 12 range and the yield was around 5 percent. Now the P/E is around 18 and the yield around 3 percent. I'm not a buyer with new money at these conditions, but I am happy to hold and continue to reinvest my dividends.
Glad I got in when I did!