India is the third-largest military spender after the US and China. India spent more than $70 billion in 2020. Recently, Lockheed Martin has been in the news for being one of the contenders for India’s mega $15 billion fighter aircraft purchase tender. The country plans to acquire 114 fighter aircraft, and a host of defense majors are in the reckoning. A deal as large as $15 billion can also have significant other benefits like future maintenance and spares contracts. So, for a company like Lockheed Martin, it can mean serious business from one of the fastest-growing economies and largest military spenders in the world. Lockheed Martin is one of the largest aerospace companies in the world and also has the distinction of being the largest defense contractor in the world. If you are looking for aerospace stocks to buy today, then Lockheed Martin can be among the options.
Some Interesting Facts About Lockheed Martin
Lockheed Martin is based in Maryland near the Washington DC area. Its location is appropriate given the large volume of government business that the company gets. However, Lockheed’s business isn’t restricted to the US. It has 395 facilities globally, with a majority being in the US. Lockheed employs people in 54 countries. It has a total of 114,000 employees, out of which 8,100 are international employees. Lockheed’s employee base is highly skilled, as more than 60,000 employees are either scientists, engineers, or technologists. Lockheed also makes sure that it hires people who have served in the military and brings with them real-world knowledge. One in five Lockheed employees is an army veteran. Lockheed has a long reputation for winning government contracts, and it has solid human capital. These moats serve the company well. Lockheed Martin is among the top aerospace stocks for 2021.
Lockheed Martin earns 74% of its revenue from the US government. Defense spending tends to be very stable for long periods of time. Therefore, the revenue visibility for companies like Lockheed Martin is relatively high. Additionally, Lockheed Martin has increased its annual dividend by an average of 9% each year over a 5-year period.