LMT vs GD: Which Is the Better Dividend Stock?
As of June 2026, LMT and GD are closely matched. LMT offers the higher yield at 2.55%, GD has the higher dividend-safety score, and LMT trades at the larger discount to fair value (-8%).
| Metric | LMT | GD |
|---|---|---|
| Forward yield | 2.55% | 1.77% |
| Annual dividend | $13.80 | $6.36 |
| Payout ratio | 65% | 38% |
| Years of growth | 23 yr | 34 yr |
| 5-yr dividend growth | 6.6% | 6.4% |
| 5-yr total return | 43% | 91% |
| Dividend safety score | 85 (A) | 99 (A) |
| Fair value estimate | $498.72 | $306.93 |
| Upside to fair value | -8% | -15% |
| Frequency | quarterly | quarterly |
| Market cap | $124.6B | $97.4B |
| P/E ratio | 26.2 | 22.7 |
Higher yield
LMT
2.55%
Safer dividend
GD
Grade A
Faster growth
LMT
6.6%
Better value
LMT
-8% upside
LMT vs GD — FAQ
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