April 26, 2025 a 03:31 am
RTX: Dividend Analysis - RTX Corporation
RTX Corporation demonstrates remarkable resilience with a long-standing history of consistent dividend payouts spanning 56 years. The firm's strategic focus on maintaining a dividend yield of approximately 2% underscores their commitment to shareholder returns, even amid fluctuating economic conditions. The disciplined financial management exhibited through moderate payout ratios enhances confidence in sustained dividend distribution. As a stalwart in its sector, RTX continues to present itself as a reliable dividend-paying entity, instrumental for income-focused portfolios.
📊 Overview
RTX Corporation, a formidable player in its sector, combines consistent dividends with strategic financial management to assure shareholder value. Their current dividend yield stands at 2.04%, with a strong track record in maintaining payouts for over half a century.
| Attribute | Value |
|---|---|
| Sector | Industrial Goods |
| Dividend Yield | 2.04% |
| Current Dividend Per Share | 2.41 USD |
| Dividend History | 56 years |
| Last Cut or Suspension | None |
📈 Dividend History
The historical stability of RTX's dividend payments is a testament to its robust financial health and operational efficiency. Such consistency is pivotal for investors seeking reliable income streams.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.63 |
| 2024 | 2.48 |
| 2023 | 2.32 |
| 2022 | 2.16 |
| 2021 | 2.005 |
💹 Dividend Growth
Analyzing the dividend growth metrics provides insights into the company's financial strategy and shareholder return enhancement. RTX shows a modest yet stable growth trajectory over both three and five-year periods.
| Time Period | Growth |
|---|---|
| 3 years | 7.34% |
| 5 years | 6.03% |
The average dividend growth is 6.03% over 5 years. This shows moderate but steady dividend growth, reflecting RTX's commitment to enhancing shareholder value through prudent financial strategies.
🗣️ Payout Ratio
Payout ratios illustrate the portion of earnings allocated to dividends, serving as indicators of a firm's ability to sustain expedient dividend policies. RTX's ratios suggest a balanced distribution strategy, preserving sufficient earnings for reinvestment while providing shareholder returns.
| Key Figure | Ratio |
|---|---|
| EPS-based | 70.20% |
| Free cash flow-based | 62.44% |
With an EPS-based payout ratio of 70.20% and a free cash flow-based ratio of 62.44%, RTX maintains a judicious approach in balancing dividend payouts with earnings retention for operational and strategic maneuvers.
💰 Cashflow & Capital Efficiency
RTX's adept handling of its cash flows ensures efficient capital allocation and operational liquidity. The company sustains necessary investments while providing commendable shareholder returns.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.94% | 3.93% | 2.95% |
| Earnings Yield | 3.10% | 2.66% | 3.49% |
| CAPEX to Operating Cash Flow | 36.37% | 40.16% | 38.71% |
| Stock-based Compensation to Revenue | 0.54% | 0.62% | 0.63% |
| Free Cash Flow / Operating Cash Flow Ratio | 63.33% | 59.84% | 61.29% |
RTX demonstrates strong cash flow management with a robust Free Cash Flow to Operating Cash Flow ratio. The capital structure promotes operational agility, enabling opportunistic investments and maintaining shareholder equity.
⚖️ Balance Sheet & Leverage Analysis
The analysis of key leverage ratios informs about RTX's financial robustness and debt management. Despite variable economic conditions, RTX sustains a relatively stable leverage profile, ensuring its long-term fiscal strength.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.67 | 0.76 | 0.46 |
| Debt-to-Assets | 0.25 | 0.28 | 0.21 |
| Debt-to-Capital | 0.40 | 0.43 | 0.32 |
| Net Debt to EBITDA | 2.79 | 4.02 | 2.44 |
| Current Ratio | 0.99 | 1.04 | 1.09 |
| Quick Ratio | 0.74 | 0.78 | 0.81 |
RTX's leverage ratios signal prudence in debt management. Their stable debt-to-equity ratio and interest coverage ensure versatility in financing operations while maintaining financial stability.
🌟 Fundamental Strength & Profitability
RTX showcases inherent strength across its profitability margins and returns, reflecting sound operational execution and strategic fortitude.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 7.94% | 5.34% | 7.16% |
| Return on Assets | 2.93% | 1.97% | 3.27% |
| Net Margin | 5.91% | 4.64% | 7.75% |
| EBIT Margin | 9.98% | 7.96% | 11.06% |
| EBITDA Margin | 15.52% | 13.95% | 16.66% |
| Gross Margin | 19.09% | 17.54% | 20.38% |
| R&D to Revenue | 3.63% | 4.07% | 4.04% |
RTX's robust return metrics and diverse margin structures underline efficient capital usage. The strong profitability margins are sustained by attentive management strategies and market positioning.
🔔 Price Development
🏆 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
✅ Rating
RTX Corporation receives a solid endorsement based on its consistent historical dividend growth, reliable payout policy, and stable financial metrics. With an overall score of 32 out of 40, it remains a formidable investment choice for dividend-focused investors. The company's strategic growth and commitment to shareholder returns underpin its robust standing amid comparable industry players.