Lockheed Martin: Best Of Breed Defense Sector Stock
Lockheed Martin (LMT) is the best-of-breed when it comes to the defense industry. Lockheed is a leader in the development and manufacture of missiles, helicopters, and jets for the defense industry.
Lockheed Martin is one of the companies that I estimated was undervalued back in late 2012. While it appears to have been the case, I, unfortunately, didn't follow through on that decision by trying to get too cute with the valuation. Since then, the share price has outperformed the S&P 500 by roughly 2.3x.
When I began investing, the dividend growth strategy appealed most to me. Part of that was due to its simplicity: focus on quality businesses, buy at reasonable valuations, and ignore the noise in the day-to-day stock price movements. I've had some duds following this strategy, but I've had plenty of big winners over time as well. A history of growing dividends isn't fool-proof in preventing you from picking losers; however, I do think it helps to weed out some of the potential missteps that can occur when picking less established businesses.