LMT vs GD: Which Is the Better Dividend Stock?
As of September 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 2.63%, GD has the higher dividend-safety score, and LMT trades at the larger discount to fair value (+13%).
| Metric | LMT | GD |
|---|---|---|
| Forward yield | 2.63% | 1.79% |
| 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 | 52% | 82% |
| Dividend safety score | 89 (A) | 99 (A) |
| Fair value estimate | $590.16 | $315.58 |
| Upside to fair value | +13% | -11% |
| Frequency | quarterly | quarterly |
| Market cap | $121.0B | $96.3B |
| P/E ratio | 19.3 | 21.7 |
Higher yield
LMT
2.63%
Safer dividend
GD
Grade A
Faster growth
GD
6.5%
Better value
LMT
+13% upside
LMT vs GD — FAQ
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