GD vs LMT: Which Is the Better Dividend Stock?
As of Oct 17, 2026, GD (General Dynamics Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. LMT offers the higher yield at 2.61%, GD has the higher dividend-safety score, and LMT looks like the better value (its fair-value estimate is 10% below its share price).
Key facts: GD vs LMT
Data as of · Source: SmarterDividends data
- As of Oct 17, 2026, Lockheed Martin Corporation (LMT) has the higher forward dividend yield at 2.61%, versus 1.85% for General Dynamics Corporation (GD).
- As of Oct 17, 2026, SmarterDividends grades GD's dividend safety A (99/100) and LMT's A (89/100).
- By SmarterDividends' count as of Oct 17, 2026, GD has raised its dividend for 34 consecutive years and LMT for 23.
- As of Oct 17, 2026, GD pays out 38% of its earnings as dividends and LMT pays out 50%.
- As of Oct 17, 2026, GD's fair-value estimate is 16% below its share price and LMT's fair-value estimate is 10% below its share price, so LMT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "GD vs LMT: Dividend Yield, Safety & Value Compared," updated Oct 17, 2026, https://smarterdividends.com/compare/gd-vs-lmt
| Metric | GD | LMT |
|---|---|---|
| Forward yield | 1.85% | 2.61% |
| Annual dividend | $6.36 | $14.40 |
| Payout ratio | 38% | 50% |
| Years of growth | 34 yr | 23 yr |
| 5-yr dividend growth | 6.5% | 6.4% |
| 5-yr total return | 82% | 66% |
| Dividend safety score | 99 (A) | 89 (A) |
| Fair value estimate | $287.93 | $498.96 |
| Upside to fair value | -16% | -10% |
| Frequency | quarterly | quarterly |
| Market cap | $93.1B | $127.4B |
| P/E ratio | 21.0 | 20.3 |
Higher yield
LMT
2.61%
Safer dividend
GD
Grade A
Faster growth
GD
6.5%
Better value
LMT
-10% upside
GD vs LMT — FAQ
Is GD or LMT a better dividend stock?
On the data, GD wins more head-to-head categories (5 vs 3). LMT offers the higher yield (2.61%), while GD has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, GD or LMT?
LMT has the higher forward dividend yield at 2.61%, versus 1.85% for GD.
Is GD or LMT safer?
GD has the higher dividend-safety score (99/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.
Is GD or LMT better value right now?
As of Oct 17, 2026, LMT looks like the better value: its fair-value estimate is 10% below its share price (fairly valued). For GD, its fair-value estimate is 16% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.