Last week aerospace company United Technologies (UTX) hiked its quarterly cash dividend for the 20th consecutive year. The new dividend is at $0.589 per share, up from $0.535 per share last year. Adding this all together it means that United Technologies’ investors can assume an approximate $198 million more in dividends.
United Technologies has offered quarterly dividends every year since 1936.
CEO of United Technologies, Louis Chênevert, said concerning the dividend, “Strong cash generation is hallmark of UTC, and we are pleased to extend our long track record of dividend increases. This increase reflects confidence in our portfolio, our strategy, and our leadership team to grow earnings over the longer term.”
United Technologies’ historical dividend yield:
United Technologies is a diversified company providing high technology products and services to the building and aerospace industries. The operations of the company are primarily classified into two principal businesses: commercial and aerospace. Under its commercial business, the company has Otis and the UTC Climate, Controls & Security division, which combined the former Carrier and UTC Fire & Security divisions. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions.
United Technologies historical revenue and net income:
The company reported that they will be reporting their third quarter financials on Oct. 22 prior to the market open.
Analysts are pretty optimistic about United Technologies. They are projecting a profit of $1.53 per share, representing a rise up from $1.37 per share in the third quarter 2012. For the fiscal year 2013, analysts are projecting earnings of $6.15 per share. Also, the company’s revenue is projected to be about 8% higher than last year’s total of $15.04 billion. For the year, analysts are predicting that they company’s revenue will come in around $63.90 billion.
Over the course of the past year, the revenue of UTX has increased an average of 8%, with the highest jump in revenue coming in 2013Q1 when the company’s revenue jumped 16%. You can check out more historical financial information by looking at United Technologies’ 10-Year Financial Data.
The Peter Lynch Chart suggests that the company is currently overvalued:
There are several gurus that maintain a position in UTX, with the largest three being:
· Ken Fisher: 7,782,011 shares, representing 0.85% of the company’s shares outstanding and 2.1% of his total portfolio.
· Pioneer Investments: 3,686,644 shares representing 0.4% of the company’s shares outstanding and 1.4% of their total assets managed.
· Diamond Hill Capital: 2,766,987 shares representing 0.3% of the company’s shares outstanding and 2.8% of their total portfolio.
Some other notable guru shareholders are Jeremy Grantham, Scott Black and Steven Cohen.
United Technologies has a market cap of $98.85 billion. Its shares are currently trading at around $107.74 with a P/E ratio of 15.70, a P/S ratio of 1.60 and a P/B ratio of 3.60. The company’s dividend yield is currently 2.00%. UTX had an annual average earnings growth of 8.60% over the past ten years.
GuruFocus rated United Technologies the business predictability rank of 2-star.
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