Income is a big part of investors' returns. Stocks, mutual funds and fixed income ideas in this column are featured because they are relatively solid in their ability to pay dividends or interest. We're giving income investors a resource to start their research for investments that give better yields with lower risk.

It operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment provides military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs include the F-35 Lightning II Joint Strike Fighter-multi-role coalition fighter, the F-22 Raptor-air dominance attack and multi-mission stealthfighter, the F-16 Fighting Falcon-multi-role fighter, the C-130J SuperHercules tactical transport aircraft, and the C-5M Super Galaxy strategic airlift aircraft. This segment also supports P-3 Orion maritime patrol aircraft and U-2 Dragon Lady high-altitude reconnaissance aircraft.

The Electronic Systems segment offers air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services.

The IS&GS segment provides federal services; information technology solutions; software and systems engineering support services; logistics, mission operations support, peacekeeping, and nation-building services for the various U.S. defense and civil government agencies.

The Space Systems segment produces government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.

2010 won't be a good year for LMT. Earnings will most likely come in at $7.47 (the consensus from 21 analysts), below the $7.78 the company recorded in 2009. But in 2011, a revival is forecast, to $7.79. The earnings shortfall this year will most likely occur because the F-22 Raptor jet is coming to an end. It's a good jet but too costly. Scheduled shut down is in 2012 with a total build of 187. There's an outside chance that the program will continue due to a new Russian high-capability aircraft but that is yet to be determined.

Another reason for lower profits: higher pension costs. While there was a credit of $128 million in 2008 in pension charges, last year, there was a cost of $456 million. Management stated that the pension charge will stay high in 2010.

On the bright side: there's a new jet coming down the runway: the F-35. The company sees demand from the U.S. Navy, Marines and Air Force for 2443 planes as well as 8 other nations interested in hundreds more. Estimates for total production are for 6000 planes. That translates into about $500 billion in revenues for LMT plus hundreds of billions dollars more for parts, maintenance and upgrades once the jets are deployed. Total spending on the project could reach $1 trillion, and LMT would receive much of that. The only caution: the jet is still new, and there have been some initial problems, as there are on all new aircraft. Analysts see no real competition for the F-35 from any other Western nation.

For income investors, part of the story has to be the actual payout. LMT is currently giving investors $2.52 a share, up from $2.34 in 2009 and $1.83 in 2008. Current yield is 2.9%. It takes only 30% of earnings to pay the dividend so investors can pretty much count on it every quarter.

More numbers: Market cap is $31.92 billion. Forward P/E is 10.91. Price to sales ratio is .71. Price to book ratio is 7.74. Book value is $11.07. Return on Equity for the last 12 months was a remarkable 86.47%. Return on assets was 7.67%. There's $2.74 billion in cash or $7.29 a share. Total debt is $5.05 billion or 55% of capital. Current ratio is 1.17. Revenues for the last 12 months were $45.19 billion. Beta is 1.07. There are 375.43 million shares outstanding. Institutions hold 88.10% of the stock.

Income investors will have to be patient for any capital gains here unless the F-35 program gains faster acceptance than planned. But they can find comfort in a decent dividend, and the fact that it only takes 30% of earnings to pay. That means they can count on it without worrying.

- Company Web site: www.lockheedmartin.com