Lockheed Pays More, but RTX Has the Broader Dividend Cushion

Lockheed Martin and RTX both raised their outlooks after second-quarter results, but the companies support dividends with different business mixes. Lockheed offers the larger payment and a longer streak of annual increases. RTX offers broader cash-flow diversification across defense, aircraft engines and commercial aerospace systems.

Lockheed's board paid a $3.45 quarterly dividend through the middle of 2026 and later increased the fourth-quarter payment to $3.60. The company reported second-quarter net earnings of $1.8 billion, or $7.94 per share, compared with $342 million, or $1.46 per share, a year earlier when major program charges depressed results.

That rebound shows both the earnings power and the vulnerability of a defense contractor built around large, technically complex programs. Fixed-price development work can create abrupt charges, while budget delays or changing Pentagon priorities can affect multiple years of cash flow. Lockheed is also investing heavily in production capacity to meet elevated demand.

RTX spreads risk across more end markets

RTX increased its quarterly dividend by 7.4% to $0.73 in April. Its defense operations provide backlog, while Pratt & Whitney and Collins Aerospace add commercial-aircraft production and aftermarket service. That mix reduces dependence on any single government program, although it introduces separate risks from Pratt's geared-turbofan inspection program, tariffs and airline production cycles.

RTX's second-quarter report showed continued sales growth and reaffirmed the importance of free cash flow, debt reduction and shareholder returns. Its payout is smaller than Lockheed's in dollar terms, but the faster recent growth rate and more diversified cash generation can provide a stronger cushion through a program-specific shock.

Lockheed remains the choice for investors who prioritize current income and a long dividend record. RTX is more attractive for investors who value diversification and balance-sheet repair. The next tests are Lockheed's ability to control fixed-price program costs and RTX's ability to keep engine-remediation cash demands within guidance.