LMT vs GD: Which Is the Better Dividend Stock?
As of July 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 2.37%, GD has the higher dividend-safety score, and LMT trades at the larger discount to fair value (+4%).
| Metric | LMT | GD |
|---|---|---|
| Forward yield | 2.37% | 1.64% |
| Annual dividend | $13.80 | $6.36 |
| Payout ratio | 50% | 38% |
| Years of growth | 23 yr | 34 yr |
| 5-yr dividend growth | 6.4% | 6.5% |
| 5-yr total return | 62% | 93% |
| Dividend safety score | 89 (A) | 99 (A) |
| Fair value estimate | $604.90 | $306.64 |
| Upside to fair value | +4% | -21% |
| Frequency | quarterly | quarterly |
| Market cap | $134.5B | $104.6B |
| P/E ratio | 21.5 | 24.3 |
Higher yield
LMT
2.37%
Safer dividend
GD
Grade A
Faster growth
GD
6.5%
Better value
LMT
+4% upside
LMT vs GD — FAQ
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