NEW YORK (TheStreet) -- Dividend stocks are often seen as defensive plays on the market. They rarely fall out of favor for investors, even when stocks are performing well. Now TheStreet's David Peltier is assembling his top dividend picks for 2015.
Despite boosting its dividend by 12.75% in September to $6 per share annually, the stock only yields 3.1%. While still higher than the S&P 500's (SPY) yield of 2.1%, Lockheed Martin's dividend is below the company's five-year average yield of 3.7%.
However, the stock's 32% year-to-date rally has depressed that yield, something most shareholders won't complain about.
Peltier also pointed out that the company has raised its dividend by a double-digit percentage in each of the past 12 years.
Defense spending has likely bottomed out, Peltier reasoned. This should pave the way for shares of Lockheed Martin to climb above $200 as revenues climb over the next 12 months.