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Lockheed MartinLMT -0.10%86 5-Year Yield-on-Cost % is 3.63 as of Jul. 16, 2026, which is 4% above its 10-year median of 3.49. GuruFocus rates LMT with a GF Score™ of 86/100 and a GF Value™ of $549.18 (Fairly Valued). The stock has 3 warning signs investors should review. Among 172 Aerospace & Defense companies, Lockheed Martin ranks better than 82.56% on this metric.
Lockheed Martin's yield on cost for the quarter that ended in Mar. 2026 was 3.63.
The historical rank and industry rank for Lockheed Martin's 5-Year Yield-on-Cost % or its related term are showing as below:
LMT'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.71 Med: 3.49 Max: 4.27
Current: 3.63
During the past 13 years, Lockheed Martin's highest Yield on Cost was 4.27. The lowest was 2.71. And the median was 3.49.
LMT's 5-Year Yield-on-Cost % is ranked better than 82.56% of 172
companies
in the Aerospace & Defense industry
Industry Median: 1.045
vs LMT: 3.63
Lockheed Martin (NYSE:LMT) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Lockheed Martin 5-Year Yield-on-Cost % Related Terms
LMT vs HWM, GD, TDG: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, Lockheed Martin's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lockheed Martin 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Lockheed Martin's 5-Year Yield-on-Cost % falls into.
Lockheed Martin 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Lockheed Martin is calculated as
Lockheed Martin (LMT) has a 5-Year Yield-on-Cost % of 3.63 as of Jul. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lockheed Martin and its competitors. This is near median its historical median of 3.49. Over the past decade, Lockheed Martin's 5-Year Yield-on-Cost % has ranged from 2.71 to 4.27. According to the industry distribution chart, Lockheed Martin ranks #30 out of 172 companies in the Aerospace & Defense industry, placing it in the top 17.4%.
Is Lockheed Martin's 5-Year Yield-on-Cost % too high?
Lockheed Martin's current 5-Year Yield-on-Cost % of 3.63 is near median its 10-year median of 3.49. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 4.27. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.05. Lockheed Martin's value of 3.63 is 247.4% above this industry median. Based on the distribution chart, Lockheed Martin ranks #30 out of 172 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Lockheed Martin has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lockheed Martin's 5-Year Yield-on-Cost % compare to HWM and GD?
According to the Aerospace & Defense industry distribution chart, Lockheed Martin ranks #30 out of 172 companies for 5-Year Yield-on-Cost %. This places Lockheed Martin in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 1.05. Lockheed Martin's value of 3.63 is 247.4% above this benchmark. Historically, Lockheed Martin's own 5-Year Yield-on-Cost % has ranged from 2.71 to 4.27 over the past decade. While the company's 10-year median is 3.49 vs. the industry median of 1.05, Lockheed Martin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.05, based on 172 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lockheed Martin's current 5-Year Yield-on-Cost % of 3.63 is 247.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lockheed Martin and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lockheed Martin's current 5-Year Yield-on-Cost % is 3.63, which is near median its own 10-year median of 3.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lockheed Martin stock overvalued right now?
Based on GuruFocus' analysis, Lockheed Martin (LMT) is currently considered Fairly Valued. The stock's GF Value™ is $549.18, compared to a current price of $514.46 — trading 6.3% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.63, which is near median its 10-year median of 3.49 and 247.4% above the Aerospace & Defense industry median of 1.05. Lockheed Martin's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Lockheed Martin (LMT), the current 5-Year Yield-on-Cost % is 3.63 as of Jul. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lockheed Martin (LMT) Overvalued in 2026?
Based on GuruFocus' analysis, Lockheed Martin stock appears to be undervalued.
The current stock price of $514.46 is trading 6.3% below its estimated GF Value™ of $549.18.
GuruFocus considers Lockheed Martin to be Fairly Valued.
Key valuation signals for LMT:
5-Year Yield-on-Cost %: 3.63 (near median its 10-year median of 3.49)
GF Value™: $549.18 vs. price of $514.46 (6.3% below fair value)
Industry Position: 247.4% above the Aerospace & Defense median (#30 of 172)
No single metric tells the full story. See the LMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Aeronautics is Lockheed's largest segment, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, mainly encompassing the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.
86GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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