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LMT is definitely one of those "wish I had bought more" stocks. I picked up all of my shares in late 2012 and early 2013 -- during the "sequestration" volatility -- at prices between $87 and $94. As I've said before, it is one of those rare companies that has a built in tail-wind helping it along. They sell their products to customers who are hooked on their products and who use other people's money to buy them!
Even at current prices it scores high in my system, but I agree with you completely, Horace, that it is tough to pay so much more for a stock today than you did before.
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Great catch EricL -- I wasn't even looking out for that one. Love those pleasant surprises! 16% is a great raise, though less (percentage-wise) than recent years. But you just can't have 20% raises forever. And I think that the Q3 dividend (at the old rate of $1.15) is payable tomorrow. Is DG a good strategy or what? 
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(09-26-2013, 01:51 PM)TomK Wrote: Great catch EricL -- I wasn't even looking out for that one. Love those pleasant surprises! 16% is a great raise, though less (percentage-wise) than recent years. But you just can't have 20% raises forever. And I think that the Q3 dividend (at the old rate of $1.15) is payable tomorrow. Is DG a good strategy or what?
If only I could get annual 16% raises at work...
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(08-29-2013, 10:15 AM)Horace Cugle Wrote: I agree on PM, I added some a week or so ago at $85.50 and felt like I stole it. I'd buy more but I've got enough.
Happy to see that LMT is a satisfactory holding for you guys.
I am also invested in LMT, but not as a shareholder.
I have their Corporate Bond CUSIP 539830AF6, maturing 2026, effective yield 4.85%.
Much as I like LMT and their DG prospects, I probably will not buy the common at this time, and be happy with my bond.
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The whole defense contractors look like an interesting sector today. Everyone is scared that the defense budgets will be frozen, when in all respect it is unlikely that more than a 10% drop from the highs will occur. Since defense companies are cheap, I think they could be good buys from here
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Welcome to the group, sagitarius!
(10-14-2013, 12:06 PM)sagitarius84 Wrote: The whole defense contractors look like an interesting sector today. Everyone is scared that the defense budgets will be frozen, when in all respect it is unlikely that more than a 10% drop from the highs will occur. Since defense companies are cheap, I think they could be good buys from here
I agree with you completely. The world is not getting any safer, sad to say, so I don't think defense budgets are going down any time soon. Though I did see a recent article arguing that defense companies are chronically undervalued, from a p/e perspective anyway, so while they may be great investments, it may not be a good idea to bank on p/e expansion.
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Interesting.
I have LMT and GD on my watch list. LMT buy @ $100 and GD buy @ $65.
When a company meets my basic entry criteria; I know the company or I can understand the company, current Dividend of 2.5%+, P/E under 5 year norm, div. growth which combined with current div = 10% or better, 10+ year history of div. increases, and a P/R below 75%-- and of course I have socks in my portfolio that defy one or more of these rules for various reason (there's always the exception that probes the rule ;-).
When that general criteria is meet, I set an entry price usually based on a good value in the 52 week price. For LM, $100 seems to be about dead middle.
Now granted, it hasn't gotten there in some time (but then again IBM hadn't gotten below $180 in some time...then it did;-)
So for me, LMT and GD are still to dear for me. How might some of your present the case that these defense companies are a value? DDM, or...?
Of course, no challenge or "line in the sand" is meant here, but rather how are we thinking different about these opportunities(and how might our thinking help each other better assess "value?"
Ronn
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02-15-2014, 09:54 AM
(This post was last modified: 02-15-2014, 10:08 AM by Kerim.)
Just wanted to dust off this thread to say "holy cow." LMT's progress in the past year has been incredible.
As I said when it was in the $120s and $130s, I am not really at buyer in the $160s either, but man am I glad I picked up some shares when it was in the $85-$95 range. It really was one of those rare opportunities to grab a high initial yield AND a high dividend growth rate.
Next stop -- stock split?
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Amazing how it's performed, especially with all the headwinds - ending of 2 wars, the Great Recession, the budget/debt ceiling/sequestration fiasco on capitol hill.
RTN and GD were similar:
I would think that a split may be coming. Depends on what price ranges management wants to see it trade at. Last split was in 1999 at about a $85 level so maybe not.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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02-28-2015, 02:00 PM
(This post was last modified: 02-28-2015, 02:05 PM by Kerim.)
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!
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Love LMT. If I wasn't already full up I'd buy more, even at these prices. I've got a projected EPS bump of 9% in 2015 to go along with a buyback of about 3% and a 3% div.
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