Lockheed Martin(Lmt) Financials: Dividend Payout Ratio Compared To Industry Average, Plus Other Key Ratios
Valuation Trend (Last 5 Years)
Valuation - dividend payout ratio
This chart shows the historical trend of dividend payout ratio for LMT compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Dividend Payout Ratio
Definition: The dividend payout ratio shows what portion of the company’s profits are paid out to shareholders as dividends. If it’s 60%, that means 60% goes to shareholders, while 40% is kept inside the business for future growth. High payout ratios reward shareholders today. Lower payout ratios suggest the company believes it can earn even more by reinvesting in itself.
Interpretation:
• In '2021', LMT's dividend payout ratio was 0.47, demonstrating the portion of earnings distributed as dividends. Industry average for Military/Government/Technical in '2021' stood at 0.50.
• In '2022', LMT's dividend payout ratio was 0.49, demonstrating the portion of earnings distributed as dividends. Industry average for Military/Government/Technical in '2022' stood at 0.34. Industry average declined by 0.16 from previous year.
• In '2023', LMT's dividend payout ratio was 0.48, demonstrating the portion of earnings distributed as dividends. Industry average for Military/Government/Technical in '2023' stood at 0.43. Industry average increased by 0.09 compared to previous year.
• In '2024', LMT's dividend payout ratio was 0.50, demonstrating the portion of earnings distributed as dividends. Industry average for Military/Government/Technical in '2024' stood at 0.45. Industry average increased by 0.01 compared to previous year.
Overall, LMT's dividend payout ratio has steadily improved over the past 4 years.
Formula: Dividend Payout Ratio = Dividends / Net Income
Good Range: Ranges widely; 30%-60% common for mature firms.