2024-02-14 09:18:00 ET
RTX 's (NYSE: RTX) mix of commercial aerospace businesses makes it attractive for dividend investors. The defense business is known for its solidity thanks to its highly creditworthy customers. Meanwhile, its airplane engines (Pratt & Whitney) generate aftermarket earnings for decades, and its commercial aerospace component business (Collins Aerospace) is a critical player in servicing both original equipment and aftermarket demand. That all points to long-term earnings generation and dividend growth.
Still, is it the best dividend stock for investors?
A company needs earnings and cash flow growth to grow dividends. RTX has both, but I think there are some concerns about its growth prospects, specifically its 2025 free cash flow (FCF) target of $7.5 billion. I have three specific points to address.
For further details see:
Is RTX the Best Dividend Stock for You?