Lockheed Martin Returning Billions of Dollars to Shareholders
Lockheed Martin is showing its shareholders the money -- and giving it to them as well.
On Thursday, the company announced two moves to return capital to shareholders, first by adding $3 billion to the funds its board of directors has authorized to be used for share repurchases, and second by increasing the amount of its Q4 2013 dividend payout by 16% to $1.33 per share.
Lockheed noted that the new dividend payment will be $0.18 greater than the Q3 payout. The new-and-improved Q4 dividend will be paid on Dec. 27, 2013.
With 267.65 million shares currently outstanding, Lockheed's Q4 dividend payout will be worth $356 million in total. Over the course of a year, it will swell to $1.4 billion, or nearly half the size of the buyback program.
Lockheed's new forward dividend yield is 4.1%.
The article Lockheed Martin Returning Billions of Dollars to Shareholders originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.