Is Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 30 2024
0mins
Source: NASDAQ.COM
Overview of LVHD ETF: The Franklin U.S. Low Volatility High Dividend Index ETF (LVHD), launched in 2015, focuses on large-cap value stocks with high dividend yields and low volatility, managed by Franklin Templeton Investments, and has a current asset size of over $588 million.
Performance and Comparison: LVHD has shown a 14.05% increase this year and a 24.53% rise over the past year, but investors may also consider other ETFs like Schwab U.S. Dividend Equity ETF and Vanguard Value ETF for potentially lower expense ratios and risks.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to rise
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 493.600
Low
430.00
Averages
535.50
High
605.00
Current: 493.600
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is an aerospace and defense technology company. The Company's segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The Aeronautics segment is engaged in research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; engineering support and integration services. The RMS segment designs, manufactures, services and supports various military and commercial helicopters, sea and land-based missile defense systems. The Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Outlook for SpaceX and Lockheed Martin
- Market Potential Assessment: SpaceX's IPO estimated its total addressable market across space, connectivity, and AI at $28.5 trillion, with AI accounting for $26.5 trillion, indicating significant growth potential in the defense sector.
- Government Contract Dependency: Approximately one-fifth of SpaceX's revenue comes from the federal government, highlighting its close ties to government spending in defense, which may grow as the government expands satellite constellations.
- Profitability Comparison: Lockheed Martin is projected to achieve annualized earnings growth of 7% to 8% over the next three to five years, with a price-to-earnings ratio of 17 and a 2.7% dividend yield, showcasing its advantages in stability and value.
- Valuation Risks: With a market cap of $2.4 trillion and a price-to-earnings ratio exceeding 120, investors must carefully assess the risks associated with SpaceX's high valuation, especially during market fluctuations that could impact returns.
See More
Ondas Partners with Lockheed Martin to Enhance Counter-Drone Technology
- Strategic Partnership: Ondas's subsidiary Sentrycs has partnered with Lockheed Martin to integrate its Cyber-over-RF counter-drone technology into the Sanctum C-UAS platform, aimed at enhancing defenses against drone threats, particularly drone swarms.
- Real-Time Threat Response: Sentrycs's technology enables the Sanctum platform to detect, track, and take control of unauthorized drones without disrupting nearby communications, thereby providing operators with more options to identify and neutralize aerial threats in real-time.
- Market Demand: This collaboration addresses the growing demand for flexible, layered counter-drone systems, as the evolution of unmanned aerial threats makes the protection of military forces and critical assets increasingly vital.
- Market Reaction: Ondas's stock is trading approximately 3.70% lower at around $8.56 in premarket hours, while Lockheed Martin's stock is slightly up at about $494.90, indicating mixed initial market reactions to the partnership.
See More
Trump Pushes for Defense Production Expansion Amid Stockpile Concerns
- Defense Production Act: President Trump has called on Pentagon officials and military contractors to ramp up weapon production, particularly in light of military actions against Iran, with potential costs reaching $700 million per day, highlighting the strain on U.S. munitions stockpiles.
- Corporate Transition: Automakers like General Motors are being urged to leverage excess capacity to shift towards weapon manufacturing, especially for the Patriot and Tomahawk missiles, aiming to enhance defense capabilities in response to current military demands.
- Shareholder Return Restrictions: The administration is pressuring traditional defense firms to prioritize production over shareholder payouts, planning to implement an executive order that limits dividend payments and stock buybacks to ensure companies fulfill their contractual obligations.
- Critical Munitions Rebuilding: Congress is considering a bill that mandates defense companies to prioritize contract delivery before increasing executive pay or repurchasing stock, emphasizing the strategic importance of rebuilding critical munitions stockpiles.
See More
Mixed Market Close: Tech Stocks Decline Amid Leadership Changes
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
See More
Mixed U.S. Stock Performance with Tech Stocks Leading Declines
- Tech Stock Decline: Alphabet's stock fell over 6%, leading the tech sector down after the announcement of Google DeepMind VP Jumper's departure to Anthropic PBC, raising concerns about the company's future and potentially impacting investor confidence.
- Market Volatility Factors: Stock index futures weakened overnight due to a more than 2% rise in oil prices following Iran's threat to close the Strait of Hormuz, although they recovered later due to reported progress in peace talks with the U.S., highlighting geopolitical influences on market dynamics.
- Bond Yield Changes: The 10-year U.S. Treasury yield rose to 4.503%, a one-week high, driven by Fed rate hike expectations and an upcoming $211 billion Treasury auction, which may exert pressure on the bond market.
- Overseas Market Performance: European and Asian stock markets saw gains, with the 10-year German bund yield falling to 2.946%, reflecting optimism about global economic recovery, which could provide support for the U.S. market.
See More
Precious Metals Stocks Lag on Monday
- Market Decline: Precious metals stocks collectively fell by approximately 2.5% on Monday, indicating a weakening market confidence in the sector, which may influence investors' long-term holding decisions.
- Alamos Gold Drop: Alamos Gold's stock plummeted by about 14.2%, making it the worst performer in the industry, suggesting potential operational or market challenges that could lead investors to reassess its future outlook.
- Gold Fields Struggles: Gold Fields saw a decline of around 9.7%, a significant drop that may be linked to global gold price fluctuations and internal company issues, further exacerbating market concerns about the precious metals sector.
- Defensive Sector Impact: The weak performance of precious metals stocks aligns with the overall decline in defensive sectors, potentially signaling a rise in investors' risk-averse sentiment, which could affect overall market mood.
See More
Investment Outlook for SpaceX and Lockheed Martin
- Market Potential Assessment: SpaceX's IPO estimated its total addressable market across space, connectivity, and AI at $28.5 trillion, with AI accounting for $26.5 trillion, indicating significant growth potential in the defense sector.
- Government Contract Dependency: Approximately one-fifth of SpaceX's revenue comes from the federal government, highlighting its close ties to government spending in defense, which may grow as the government expands satellite constellations.
- Profitability Comparison: Lockheed Martin is projected to achieve annualized earnings growth of 7% to 8% over the next three to five years, with a price-to-earnings ratio of 17 and a 2.7% dividend yield, showcasing its advantages in stability and value.
- Valuation Risks: With a market cap of $2.4 trillion and a price-to-earnings ratio exceeding 120, investors must carefully assess the risks associated with SpaceX's high valuation, especially during market fluctuations that could impact returns.
See More
Ondas Partners with Lockheed Martin to Enhance Counter-Drone Technology
- Strategic Partnership: Ondas's subsidiary Sentrycs has partnered with Lockheed Martin to integrate its Cyber-over-RF counter-drone technology into the Sanctum C-UAS platform, aimed at enhancing defenses against drone threats, particularly drone swarms.
- Real-Time Threat Response: Sentrycs's technology enables the Sanctum platform to detect, track, and take control of unauthorized drones without disrupting nearby communications, thereby providing operators with more options to identify and neutralize aerial threats in real-time.
- Market Demand: This collaboration addresses the growing demand for flexible, layered counter-drone systems, as the evolution of unmanned aerial threats makes the protection of military forces and critical assets increasingly vital.
- Market Reaction: Ondas's stock is trading approximately 3.70% lower at around $8.56 in premarket hours, while Lockheed Martin's stock is slightly up at about $494.90, indicating mixed initial market reactions to the partnership.
See More
Trump Pushes for Defense Production Expansion Amid Stockpile Concerns
- Defense Production Act: President Trump has called on Pentagon officials and military contractors to ramp up weapon production, particularly in light of military actions against Iran, with potential costs reaching $700 million per day, highlighting the strain on U.S. munitions stockpiles.
- Corporate Transition: Automakers like General Motors are being urged to leverage excess capacity to shift towards weapon manufacturing, especially for the Patriot and Tomahawk missiles, aiming to enhance defense capabilities in response to current military demands.
- Shareholder Return Restrictions: The administration is pressuring traditional defense firms to prioritize production over shareholder payouts, planning to implement an executive order that limits dividend payments and stock buybacks to ensure companies fulfill their contractual obligations.
- Critical Munitions Rebuilding: Congress is considering a bill that mandates defense companies to prioritize contract delivery before increasing executive pay or repurchasing stock, emphasizing the strategic importance of rebuilding critical munitions stockpiles.
See More
Mixed Market Close: Tech Stocks Decline Amid Leadership Changes
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
See More
Mixed U.S. Stock Performance with Tech Stocks Leading Declines
- Tech Stock Decline: Alphabet's stock fell over 6%, leading the tech sector down after the announcement of Google DeepMind VP Jumper's departure to Anthropic PBC, raising concerns about the company's future and potentially impacting investor confidence.
- Market Volatility Factors: Stock index futures weakened overnight due to a more than 2% rise in oil prices following Iran's threat to close the Strait of Hormuz, although they recovered later due to reported progress in peace talks with the U.S., highlighting geopolitical influences on market dynamics.
- Bond Yield Changes: The 10-year U.S. Treasury yield rose to 4.503%, a one-week high, driven by Fed rate hike expectations and an upcoming $211 billion Treasury auction, which may exert pressure on the bond market.
- Overseas Market Performance: European and Asian stock markets saw gains, with the 10-year German bund yield falling to 2.946%, reflecting optimism about global economic recovery, which could provide support for the U.S. market.
See More
Precious Metals Stocks Lag on Monday
- Market Decline: Precious metals stocks collectively fell by approximately 2.5% on Monday, indicating a weakening market confidence in the sector, which may influence investors' long-term holding decisions.
- Alamos Gold Drop: Alamos Gold's stock plummeted by about 14.2%, making it the worst performer in the industry, suggesting potential operational or market challenges that could lead investors to reassess its future outlook.
- Gold Fields Struggles: Gold Fields saw a decline of around 9.7%, a significant drop that may be linked to global gold price fluctuations and internal company issues, further exacerbating market concerns about the precious metals sector.
- Defensive Sector Impact: The weak performance of precious metals stocks aligns with the overall decline in defensive sectors, potentially signaling a rise in investors' risk-averse sentiment, which could affect overall market mood.
See More
