How to Buy Lockheed Martin Stock in 2024

Lockheed Martin is one of the largest companies globally in the field of military support, aerospace, technology, and security.

This beginner’s guide will explain how to buy Lockheed Martin stock with a popular stock broker in 2024

In addition to this, we examine data surrounding the firm’s stock history, valuation forecast, and an analysis of Lockheed Martin stock.

Step 1: Choose a Stock Broker

When deciding where to buy Lockheed Martin stock, it’s important to review and compare a wide range of trading platforms in full.

This means looking at everything from the fees charged to buy stock in Lockheed Martin to features, regulations, and also supported payment types.

1. Capital.com 

Capital.com is a popular CFD trading platform that is heavily regulated by several financial authorities. 

Traders who decide to add a Lockheed Martin CFD to their portfolio will need to speculate on the future price of the stock. As the CFD merely tracks the asset, this enables people to go long on shares they think will increase in value, or short on those they think will decrease.

Capital.com does not offer accounts to US residents. Nonetheless, CFD trading is ideal for those that wish to trade short-term price movements on Lockheed Martin stock, as there as overnight fees to pay for each day a leveraged position is left open.

At Capital.com the long-position overnight financing fee on Lockheed Martin is 0.0225%. The Short position overnight fee is 0.0219%. People should use leverage with caution as losses can be magnified on losing trades.

The platform has over 400,000 registered users and is regulated by multiple bodies. This includes CySEC, the FCA, ASIC, and NBRB.

There are more than 5,000 stock CFDs to trade at Capital.com – all of which are commission-free. The minimum deposit is a low $20 on e-wallets, and credit/debit cards. However, a wire transfer requires a minimum of $250.

78.91% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

2. Webull 

Webull is a US-based brokerage that lists more than 5,000 stocks. Many of the stocks available here are listed in the US. The broker charges no commission to buy Lockheed Martin stock, as it is listed on the NYSE.

Non-US listed stocks can be traded as ADRs. However, the platform states that international stocks attract fees. People who wish to allocate small amounts to invest in Lockheed Martin stock can get started with stakes as low as $5.

There is no minimum deposit to worry about at Webull, however, the broker takes $8 on every wire transfer transaction. Moreover, when withdrawing funds via wire transfer, the flat fee is $25 of the transaction. That said, ACH deposits and withdrawals are free of charge for US traders.

The main trading platform is simple enough for beginners. There is also a cell phone app that is free for iOS and Android users. More experienced traders might wish to use some of the tools offered by Webull when trading stocks. This includes stock screeners, relevant market news updates, and also technical indicators and charts.

Your capital is at risk.

Step 2: Research Lockheed Martin Stock

Prior to investing money in the stock markets, traders must research the company in full.

To help clear the mist, a run-down of Lockheed Martin fundamentals can be found below.

What is Lockheed Martin?

Lockheed Martin was founded in 1995 and is headquartered in Washington, DC. Lockheed Martin is an international security and aerospace business. The company is also one of the world’s largest defense contractors.

It employs around 114,000 people worldwide and specializes in the development, production, integration, and maintenance of high-tech systems, goods, and services.

The company has four main operating units. This covers missiles and fire control, rotary mission systems, aeronautics, and space.

Lockheed Martin is a worldwide aerospace and security cooperation. Military services and commercial operators buy their aircraft from Sikorsky. This includes all five branches of the US armed forces and spans 40 different countries.

Sikorsky is owned by Lockheed Martin. As such, the majority of this company’s revenue comes from US Federal Government Agencies, as well as the Department of Defense.

International sales of goods, services, and platforms to businesses and governments make up the remaining portion of Lockheed Martin’s revenue.

Lockheed Martin Stock Price – How Much is Lockheed Martin Stock Worth?

In March 1995, Lockheed Martin went public after merging with Martin Marietta. The latter was one of the US’s biggest defense contractors at the time. The Lockheed Martin stock ticker is LMT and equities can be found on the NYSE.

Taking the company’s three stock splits into account, the IPO price was $27 per share. Examining Lockheed Martin’s stock history shows us that the all-time lowest price per equity was back in 1999 when it fell below $20. The all-time high came in April 2022, when the stock hit almost $470.

Like many stocks, Lockheed Martin stock experienced a lot of volatility between late 2021 and early 2022. This was largely down to the Omicron variant of Covid, inflation, and global supply chain issues. At the start of 2022, the stock was trading at $355.

In March 2022, investors were paying $466 per share. This displays an increase in value of over 31% in less than three months. The increase coincided with Russia’s invasion of Ukraine. This is because an increase in defense spending was deemed likely by most Western European countries and indeed the US.

In five years of trading, Lockheed Martin stock has increased by over 51%. The Lockheed Martin stock price as of writing is just 8% lower than its all-time high. As the Lockheed Martin stock chart shows, this company has a running dividend yield of 2.59% at the time of writing.

EPS and P/E Ratio

Prior to placing an order to buy Lockheed Martin stock, it’s important to gauge the financial health of the company.

Investors can look at the financial reports it releases to the public every quarter.

Below is some historical EPS information taken directly from the company’s four previous quarterly earning calls:

• Q2 2021, 6.52 EPS was reported. This was a surprise of -0.05%
• Q3 2021, 6.93 EPS was reported. This was a surprise of 1.9%
• Q4 2021, 7.24 EPS was reported. This was a surprise of 1.38%
• Q1 2022, 6.44 EPS was reported. This was a surprise of 4.23%

Below is some information surrounding Lockheed Martin’s revenue on the same financial reports:

• Q2 2021, the reported revenue was $17.03 billion, a surprise of 0.53%
• Q3 2021, the reported revenue was $16.03 billion, a surprise of -6.38%
• Q4 2021, the reported revenue was $17.73 billion, a surprise of 0.41%
• Q1 2022, the reported revenue was $14.96 billion, a surprise of -3.42%

Dividing Lockheed Martin’s EPS can calculate the P/E ratio by its price per share. At the time of writing, the P/E ratio of Lockheed Martin is 19.08 times.

Market Capitalization

At the time of writing, the market capitalization of Lockheed Martin is just short of $115 billion. As such, this is the third-largest defense contractor globally by market cap.

Index Funds

Another way to buy Lockheed Martin stock is via an index fund that holds it.

Alternatively, traders can add an ETF to their portfolio, which merely tracks the underlying index fund.

See some of the most notable ETFs that hold Lockheed Martin stock below:

• iShares U.S. Aerospace & Defense
• Direxion Daily Aerospace & Defense Bull
• Schwab U.S. Dividend Equity ETF
• Vanguard Total Stock Market ETF

By investing in an ETF such as iShares U.S. Aerospace & Defense, people are able to add multiple stocks from the same sector to their portfolio at once.

Note: Learn how to trade ETFs here.

Lockheed Martin Stock Dividends

Those who buy Lockheed Martin stock now will receive a quarterly dividend payment from the company.

The board of directors of Lockheed Martin has approved a $2.80 per share dividend for the third quarter of 2022.

Researching Lockheed Martin Stock

The Company Has Multiple Operating Units

The operational divisions of Lockheed Martin are divided into four major business sectors:

• Aeronautics – This sector produced revenues of around $26.7 billion in 2021. It encompasses the tactical aircraft, airlift, sustainment, and lines of business for aeronautical research and development.
• Missiles and Fire Control – This part of the business managed revenues of $11.7 billion in 2021. This is home to high-profile projects, including the PAC-3 Missile and the Terminal High Altitude Area Defense System.
• Rotary and Mission Systems – In 2021, this sector brought in revenues of $16.8 billion for the company. This covers Sikorsky helicopters, maritime systems, sensors, radar systems, command and control, combat training and simulation, underwater systems, and full-spectrum cyber capabilities.
• Space – This side of the business produced revenues of $11.8 billion in 2021. This part of Lockheed Martin encompasses deep space exploration, mission solutions, commercial and government satellites, and strategic missile development.

The company has also partnered with General Motors to develop a range of lunar surface vehicles.

The overarching objective is to uncover the unexplored regions of the moon to make way for scientific experimentation.

Lockheed Martin Has Secured Multi-Billion Dollar US-Army Contracts

A five-year agreement for the delivery of 120 H-60M Black Hawk helicopters to the US Army and clients for Foreign Military Sales has been reached between the US government and Lockheed Martin’s Sikorsky business.

There is also the option for the US government to increase the order to 255 helicopters. Due to a digital factory, busy manufacturing line, and an advanced, well-established supply chain, Sikorsky is able to continually improve and update the Black Hawk.

This will allow the company to fulfill the US Army’s demanding and ever-changing mission requirements. With the so-called ‘Multi-Year X’ contract, the US government will purchase 10 H-60 helicopters over a number of years.

The Black Hawk remains the cornerstone of US Army Aviation, with more than 2,100 H-60 versions now in the inventory. Deliveries for the multi-year deal are expected to continue until 2027.

Through upgrades, remanufacturing, replacement, and technology insertions, the Army should be able to satisfy its present and future capabilities and demands.

The estimated contract value for the expected deliveries is $2.3 billion, with a maximum contract value of $4.4 billion.

Lockheed Martin is Making Progress on a New Missile Facility

Lockheed Martin is investing in innovation, celebrating a milestone signifying ongoing expansion, and increasing capabilities in North Alabama at its Huntsville location.

In June 2022, the business announced it had made progress with its new missile facility.

• The Next Generation Interceptor (NGI) program from Lockheed Martin is based in Huntsville. This supports the Missile Defense Agency in its mission to defend the US against threats from ballistic missiles
• Its cutting-edge, contemporary weapon system will be developed exclusively at the Missile Systems Integration Lab facility (MSIL)
• Lockheed Martin has invested $16.5 million in the new MSIL, showing its dedication to the military, its customers, and the defense of the US
• Lockheed Martin has maintained a presence in Huntsville since the early 1960s, and the new facility adds to the company’s advanced portfolio
• The site is expected to ensure engineering rigor through ground testing and integration, validating Lockheed Martin’s approach well before a flight test
• The facility will have essential communication and infrastructure features according to third-party sources.

Beyond the 25 facilities in the state, Lockheed Martin is continuing to expand its substantial, ongoing presence in Alabama through assisting important supplier outreach initiatives.

According to news reports, this will also include workforce development and academic relationships in the region. The company expects its workforce to grow by more than 200 employees.

Defense Stocks Are Known for Growth and Stability

Lockheed Martin is the largest military contractor in the US. As such, the company receives almost all of its funding from the federal government.

Defense budgets tend to expand, thus the main variable is frequently the pace of growth, even if it might make it susceptible to the whims of Congress.

• President Biden requested an $813 billion defense budget in March 2022, an increase of 4% from the previous year
• Albeit, the real rise in spending will be lower due to high inflation
• That said, Lockheed Martin will receive a sizable share of those funds
• This is because of its leading position in the provision of military aircraft, helicopters, satellites, and missile systems for the defense of the US and its allies

The company has gone from a little under $50 billion in revenue in 2017 to over $67 billion in 2021. The revenue reported in the company’s March 2022 financial report was down 7.96% year-on-year.

The main reason for this was the COVID-19 pandemic, which led to global supply chain issues and also a shortage of employees.

Potential Windfall From Conflict in Europe

Since Russia invaded Ukraine in late February 2022, Lockheed Martin and other defense stocks have been thrust into the spotlight.

The conflict in Europe should eventually result in an increase in military spending, which Lockheed Martin is well-positioned to benefit from.

• That said, these transactions take time, so there is unlikely to be a short-term impact on sales and profitability
• While it waits for the order book to expand, Lockheed Martin does have a few short-term strategies to sustain the price of its stock
• For example, Aerojet Rocketdyne Holdings’ proposed $4.4 billion acquisition by Lockheed was canceled early in 2022. The decision frees up money for the company to significantly extend its share-repurchase program
• Increased defense expenditure in the US and across NATO could result in future orders. This is likely to include things like Javelin missiles and Lockheed helicopters, alongside other products
• At the time of writing, the anti-tank Javelin missiles deployed by the Ukrainian military are produced by Lockheed

In fact, according to Lockheed, discussions with the Pentagon are underway to increase Ukraine’s ability to produce weapons.

Moreover, in mid-2022, Germany joined Lockheed Martin as a client, opening up new markets for the company’s flagship F-35 Joint Strike Fighter.

Lockheed Martin is on Track to Becoming a Dividend Aristocrat

As we mentioned earlier, Lockheed Martin is a dividend-paying stock and in 2022, the board of directors yet again increased the size of its distribution. Based on the Lockheed Marton stock price today, the company’s running dividend yield is 2.6%.

Furthermore, the firm has consistently increased its dividend for 19 years in a row. This means it’s on track to becoming a dividend aristocrat.

Step 3: Open an Account & Research Stocks

After deciding where to buy Lockheed Martin stock, a trading account needs to be created.

The platform is regulated by the SEC, along with multiple other licensing bodies. US traders can follow the five steps outlined below to buy Lockheed Martin stock today.

Step 1: Open a Trading Account with a Regulated Stock Broker

Visit your preferred broker’s website to sign up. The process of registering an account usually takes fewer than 10 minutes.

Enter a username, password, and email address to get started.

To create an account from which to buy Lockheed Martin stock, most regulated brokers will ask for an address, cell phone number, full name, nationality, and date of birth.

Complete the registration form as requested and move to step two.

Step 2: Upload ID

All regulated trading platforms need to validate the identity of the trader they are creating an account for. When prompted by the broker, the user just needs to upload a copy of a passport, state ID, or driver’s license. The photo ID must still have a valid date.

Moreover, a copy of a bank statement or energy bill can be used to confirm the address. Trading platforms are able to validate the identity of a trader with a plethora of other documents, so check the platform itself for more information.

Step 3: Deposit Funds

Choose a payment method, enter the information required, and add an amount to the deposit.

Supported payment types include credit/debit cards, e-wallets like PayPal, Neteller, and Skrill, and wire transfers.

Step 4: Search for Lockheed Martin Stock and Start Researching

As we touched on, the Lockheed Martin stock symbol is LMT.

As such, traders can locate the correct market – usually by typing in either the company name or its stock ticker.

Once Lockheed Martin appears in the list, select the ‘Trade’ button beside it to create a buy order.

Lockheed Martin Stock – Fundamental Research

Here’s a recap of what this guide has covered with regard to the company and its stock market performance.

• Lockheed Martin is a multi-billion dollar company that has multiple operating units
• The main sectors are: Missiles and Fire Control, Aeronautics, Space, and Rotary and Mission Systems
• Products include space launchers, satellites, maritime systems, missile defense, aircraft, armored vehicles, and much more
• The company’s biggest clients are the US government agencies, the Department of Defense, and the country’s international allies
• Throughout 2021, Lockheed Martin beat all EPS estimates by between 1.9% and 4.23%
• The company has invested over $16 million in a new missile facility

Conclusion

This guide has explained how to buy stock in Lockheed Martin with a regulated stock trading platform and we’ve also provided information surrounding the financial health of the company and some history of its time on the stock market.

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