Well, even with PSA and TRV acquisitions last month I still had some free cash available from the recent Reynolds American (RAI) acquisition of Lorillard (LO). I continue to save and invest the difference, simple as that. I had about $650 in my brokerage account, so I just simply added $350 extra to make this months acquisition. That is really a great thing when you have the cash flow always rushing into the brokerage in forms of dividends and from mergers, which makes my job of investing much more easier. But anyways, I decided to go with one of my biggest unrealized gain stocks I currently hold. In terms of price growth, it has been a monster gaining over 78% in unrealized gains since initial buy in May of 2013. And in terms of dividends, it has been doing even better, returning cash to shareholders quite aggressively by raising dividend in 2013 by 15.2% and in 2014 by 14.9%. Also, the recent dividend payout from LMT makes it the fourth consecutive quarter of unchanged dividend payouts, which you know what that means, dividend raise is coming up.
Founded in 1995, Lockheed Martin Corporation is a global American aerospace, defense, security, and advanced technologies company. It is engaged in research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Lockheed Martin operates in five business segments. These comprise of Aeronautics (F-35 fighter jets), Information Systems & Global Solutions, Missiles, Fire Control, Mission Systems, Training, and Space Systems. The company is one of the worlds premier and largest defense contractors with much of its revenue coming from military sales.
- Dividend Yield: 3.2%
- 3Yr Dividend Growth Rate: 19.1%
- 5Yr Dividend Growth Rate: 18.6%
- Payout Ratio: 53.8%
- P/E: 17.0
- Consecutive Years of Dividend Raises: 12
I purchased 5 shares of LMT for the price of $187.40 adding $30.00 to my annual dividend income.
This is the 7th time I am initiating a stock acquisition this year. This transaction is my additional purchase of LMT shares into the portfolio. I now hold 15 shares of LMT. Currently, LMT ownership stake represents to be around 4.5% of my current portfolio value.
The 12-month dividend income increased to $2,399.
Thank you for reading & have a great day!