ARLINGTON, Va. - RTX (NYSE: RTX), a major technology and defense company, declared a dividend increase of 6.8 percent for its common stock today. The quarterly payout, now set at 63 cents per share, is scheduled for distribution on June 13, 2024, to shareholders on record as of May 17, 2024.
This decision marks a continuation of RTX's long-standing tradition of sharing profits with its investors, as the company has consistently paid cash dividends since 1936. RTX President and CEO Chris Calio expressed the company's optimism about its financial health and future prospects. "The growth of RTX's dividend reflects our confidence that our portfolio is strong and demand for our products continues to grow," Calio stated.
In addition to the dividend increase, RTX has outlined a capital return strategy that includes significant share repurchases. Calio announced that the company aims to return between $36 and $37 billion to shareholders through dividends and stock buybacks by 2025, following the company's strategic merger.
RTX, with a workforce exceeding 185,000 people worldwide, operates in various high-tech sectors through its businesses Collins Aerospace, Pratt & Whitney, and Raytheon (NYSE:RTN). These divisions focus on advancing aviation, engineering integrated defense systems, and developing next-generation technologies. The company, which reported sales of $69 billion in 2023, is headquartered in Arlington, Virginia.
Investors are advised to consider the forward-looking nature of the company's statements regarding future dividends, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. The company has directed investors to its SEC filings for a more comprehensive understanding of these risks.
InvestingPro Insights
Today's announcement by RTX (NYSE: RTX) of a dividend increase is a testament to the company's commitment to shareholder returns. In line with this, one of the InvestingPro Tips highlights RTX's track record of maintaining dividend payments for 54 consecutive years, underscoring its reliability for income-focused investors. Moreover, management's strategy includes aggressive share buybacks, demonstrating confidence in the company's valuation and future performance.
From a financial perspective, RTX's current market capitalization stands at $134.5 billion. The company's P/E ratio, a key metric for valuation, is at 40.72, which indicates a premium compared to the industry average. This premium is also reflected in the adjusted P/E ratio for the last twelve months as of Q1 2024, which is at 43.96. Despite this high valuation, analysts predict the company will be profitable this year, with a net income expected to grow, which may justify the current earnings multiple to some investors.
For those interested in exploring further, there are 10 additional InvestingPro Tips available for RTX, providing a deeper dive into the company's financial health and market performance. To access these insights and leverage the full suite of analytical tools, visit InvestingPro and use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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