LMT vs RTX: Dividend Yield, Growth & Safety Comparison
Lockheed Martin Corp (LMT) and RTX Corp (RTX) are both in the Industrials sector, making them natural rivals for dividend investors. LMT edges ahead on yield at 2.12% versus RTX's 1.37%. For dividend growth, RTX leads with a 5-year CAGR of 7.4% versus LMT's 5.9%. RTX holds the edge in dividend safety with a "Safe" rating. LMT is a Dividend Contender while RTX is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | LMT | RTX |
|---|
| Dividend Yield | 2.12% | 1.37% |
| Annual Dividend | $13.35 | $2.67 |
| 5-Year CAGR | 5.9% | 7.4% |
| Payout Ratio | 62% | 54% |
| Consecutive Years | 23 | 33 |
| Price | $650.20 | $198.82 |
Yield Comparison
Lockheed Martin Corp (LMT) currently yields 2.12%, which is solid for the broader market. That's 0.75% more than RTX Corp (RTX), which yields 1.37%. In dollar terms, LMT pays $13.35/share annually versus RTX's $2.67/share.
Dividend Growth
Over the past five years, RTX has grown its dividend at a 7.4% CAGR compared to LMT's 5.9%. LMT: Dividend growth is slowing — the 3-year CAGR of 4.8% trails the 5-year rate of 5.9% and the 10-year rate of 7.8%. RTX: Dividend growth has been steady, with a 3-year CAGR of 7.3% and a 5-year CAGR of 7.4% (10-year: 5.5%).
Dividend Safety
LMT's dividend safety is rated "Moderate." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. RTX's dividend safety is rated "Safe." The payout ratio of 54% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x. RTX's payout ratio of 54% is more conservative than LMT's 62%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LMT generates approximately $212/year in dividend income, compared to $137/year from RTX — a difference of $75/year. At $100,000, that gap widens to $750/year.
Verdict
- Best for income: LMT
- Best for growth: RTX
- Best for safety: RTX
Frequently Asked Questions
Which has a higher dividend yield, LMT or RTX?
Lockheed Martin Corp (LMT) has a higher dividend yield of 2.12% compared to RTX Corp (RTX) at 1.37%.
Is LMT or RTX a better dividend growth stock?
RTX Corp has the stronger dividend growth with a 5-year CAGR of 7.4%, compared to Lockheed Martin Corp's 5.9%.
Which is safer for dividend income, LMT or RTX?
Lockheed Martin Corp's dividend safety is rated "Moderate" while RTX Corp is rated "Safe." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. The payout ratio of 54% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
How much income does $10,000 in LMT vs RTX generate?
A $10,000 investment in LMT generates approximately $212/year in dividends, while the same amount in RTX generates about $137/year.
Is LMT or RTX a Dividend Aristocrat?
Lockheed Martin Corp is a Dividend Contender (23 years) and RTX Corp is a Dividend Aristocrat (33 years).
Which has a lower payout ratio, LMT or RTX?
RTX Corp has a lower payout ratio of 54% compared to Lockheed Martin Corp's 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LMT vs RTX: which is better for retirement income?
It depends on your priorities. LMT for current income, RTX for dividend growth, RTX for safety. Many retirement investors hold both for diversification.
LMT Dividend Analysis | RTX Dividend Analysis | All Comparisons | Comparison Tool