This newly-merged defense and aerospace company is forecasted to grow by 23.5% next year. The shares have a current dividend yield of 2.93%, paid quarterly.
Raytheon Technologies Corporation (RTX)
From DRIP Investor
Raytheon Technologies is the result of the merger of United Technologies’ aerospace and defense businesses (Collins Aerospace and Pratt & Whitney) with Raytheon, a major provider of defense systems. The combined company has annual revenue of approximately $74 billion with some 195,000 employees.
Defense-related companies have been finding decent investor support given that the federal government is expected to maintain a healthy appetite for defense spending. Aerospace business will likely remain under pressure as a result of the massive slowdown in commercial aviation.
I have long felt that United Technologies and Raytheon were both investment-grade stocks and worthwhile portfolio holdings. Thus, once the combined firm gets through its assimilation issues, I suspect the stock will provide, at a minimum, returns in line with the broad market.
Raytheon Technologies’ direct purchase plan has a minimum initial investment of $250. The firm will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of $50 for five consecutive months. There is a $10 enrollment fee for joining the plan. Partial dividend reinvestment is available. Dividend reinvestment fees are 5% of the amount reinvested (maximum $3) plus $0.03 cents per share. Optional cash purchase fees are $5 ($2.50 for automatic investments) plus $0.03 per share. Selling fees are $15 plus $0.12 per share for a batch sale and $25 plus $0.12 per share for market or limit-order sells.
The plan administrator is Computershare. For enrollment information call (800) 488-9281 or visit www.computershare.com.
Charles B. Carlson, CFA, DRIP Investor, dripinvestor.com, 800-233-5922, May 2020