Investors seeking to capitalize on dividend-paying stocks should take note of two prominent companies recently announcing increases in their dividend payouts. With these updates, savvy investors can plan their portfolios accordingly, leveraging the financial strength of these well-established firms.
Lockheed Martin (NYSE: LMT)
Lockheed Martin, a leader in the defense industry, has declared a significant 5% increase in its quarterly dividend, raising it to $3.45 per share. This marks the 23rd consecutive year the company has increased its dividend, showcasing its commitment to returning value to shareholders. Alongside this dividend hike, Lockheed Martin has authorized an additional $2 billion to its stock buyback program, bringing the total available for repurchase to a staggering $9.1 billion.
This dividend will be distributed on December 30 to investors who hold shares as of December 1. Given the company’s current market conditions and its ongoing contracts with the U.S. government, including a substantial order for F-35 fighter jets, Lockheed Martin is well-positioned for continued growth. Analysts estimate an 8% increase in year-over-year revenue, projecting total revenue to exceed $18.5 billion.
Starbucks (NASDAQ: SBUX)
In contrast, Starbucks has announced a more modest increase in its quarterly dividend, lifting it by just $0.01 to $0.62 per share, which corresponds to a yield of over 3%. Although the increase may seem minor, it maintains the company’s track record of annual dividend raises since it initiated its dividend policy in 2010.
However, Starbucks has faced challenges recently, including a drop in net income over the last three quarters of fiscal 2025. The company has also announced significant cuts, including the elimination of approximately 900 corporate jobs and the closure of numerous coffee shops across North America. While the dividend increase demonstrates a commitment to shareholders, potential investors should monitor the company’s performance closely, as it navigates its current operational hurdles.
For investors looking for solid returns, both Lockheed Martin and Starbucks present noteworthy considerations for dividend-paying stocks. Lockheed Martin’s robust financial health and consistent dividend growth highlight its stability, while Starbucks offers a glimpse into the potential of recovery amid challenges. As these companies continue to develop, they could provide valuable opportunities for shareholders.
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