LMT vs RTX: Dividend Comparison

At $650.20 per share, $10,000 buys about 15.4 shares of Lockheed Martin Corp (LMT). Each share pays $13.35 per year in dividends, so the position starts out generating roughly $205 per year — about $17 a month.

At $198.82 per share, $10,000 buys about 50.3 shares of RTX Corp (RTX). Each share pays $2.67 per year in dividends, so the position starts out generating roughly $134 per year — about $11 a month.

LMT is the larger income stream from day one: $71 per year more on the same $10,000 invested.

Lockheed Martin Corp (LMT) has raised its dividend about 5.9% a year over the past five years. If that pace held, the $212 per year that $10,000 generates today at the current 2.12% yield would reach $378 per year by 2036 — a 3.8% yield on the original cost.

RTX Corp (RTX) has raised its dividend about 7.4% a year over the past five years. If that pace held, the $137 per year that $10,000 generates today at the current 1.37% yield would reach $280 per year by 2036 — a 2.8% yield on the original cost.

On those trailing rates, LMT pays more in 2036: $378 versus $280 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

Not within a realistic holding period. RTX Corp (RTX) is growing its dividend faster (7.4% vs 5.9% a year), but the starting-yield gap — 2.12% for LMT vs 1.37% for RTX — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, LMT's head start is decisive.

Lockheed Martin Corp (LMT) earns $21.51 per share against $13.35 paid out in dividends — 1.6x coverage (a 62% payout ratio).

RTX Corp (RTX) earns $4.96 per share against $2.67 paid out in dividends — 1.9x coverage (a 54% payout ratio).

Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.

For income you need right now, Lockheed Martin Corp (LMT) leads: $100,000 invested today pays about $177 a month at the current 2.12% yield, versus $114 a month from RTX Corp (RTX) at 1.37%.

With a decade or more before the income is needed, RTX's faster dividend growth (7.4% vs 5.9% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

On consistency: LMT has raised its dividend 23 consecutive years; RTX has raised its dividend 33 consecutive years.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.