May 27, 2025 a 07:31 am
RTX: Dividend Analysis - RTX Corporation
RTX Corporation has established a robust dividend track record with a significant history of 56 years without cuts or suspensions. The firm's dividend yield is moderate at 1.94%, reflecting sound financial management and consistent shareholder returns. This stability denotes a resilient company poised to navigate market fluctuations while ensuring dividends for investors.
Overview 📊
The sector in which RTX Corporation operates is a yardstick of its operational robustness, combined with a committed dividend history. The company's financial discipline is highlighted by a well-maintained dividend yield and significant market presence.
| Metric | Value |
|---|---|
| Sector | Defense & Aerospace |
| Dividend yield | 1.94 % |
| Current dividend per share | 2.41 USD |
| Dividend history | 56 years |
| Last cut or suspension | None |
Dividend History 📉
RTX Corporation's unwavering dividend payments over the decades are indicative of its enduring business model and fiscal responsibility. Such a track record solidifies investor confidence and promises continued reliability.
| Year | Dividend per share (USD) |
|---|---|
| 2025 | 1.31 |
| 2024 | 2.48 |
| 2023 | 2.32 |
| 2022 | 2.16 |
| 2021 | 2.01 |
Dividend Growth 📈
Dividend growth reflects a company's profit reinvestment and shareholder benefit policies. RTX Corporation exhibits a steady dividend growth rate, indicating the potential for ongoing shareholder returns enhancements.
| Time | 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, inferring persisting development and optimization of financial strategies.
Payout Ratio ✅
The payout ratio reveals the extent of earnings and cash flows distributed to shareholders, stratifying the financial capability to sustain dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 70.20 % |
| Free cash flow-based | 62.44 % |
With an EPS-based payout ratio of 70.20% and FCF-based payout ratio of 62.44%, RTX demonstrates a balanced strategy in preserving funds for growth while optimizing shareholder returns.
Cashflow & Capital Efficiency 💰
Strong cash flow and capital efficiency are fundamental for sustaining and expanding a dividend agenda, thereby enhancing shareholder value.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.94 % | 3.93 % | 2.95 % |
| Earnings Yield | 3.09 % | 2.66 % | 3.49 % |
| CAPEX to Operating Cash Flow | 36.38 % | 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 % |
The data underscores RTX's capacity to convert earnings into productive cash flows which stabilize investment and dividend distribution.
Balance Sheet & Leverage Analysis 🏦
The balance sheet provides insights into financial resilience and leverage, pivotal in identifying the risk-return profile and sustaining dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 71.30 % | 75.65 % | 46.12 % |
| Debt-to-Assets | 26.34 % | 27.95 % | 21.09 % |
| Debt-to-Capital | 41.62 % | 43.07 % | 31.56 % |
| Net Debt to EBITDA | 3.07 | 4.02 | 2.44 |
| Current Ratio | 0.99 | 1.04 | 1.09 |
| Quick Ratio | 0.74 | 0.78 |
The solid liquidity and leverage metrics indicate capacity to manage debts, enabling sustainability of dividend policies despite market adversities.
Fundamental Strength & Profitability 📈
The profitability metrics project the capability to pursue growth and sustain dividend policies, essential for maximizing shareholder wealth.
| Metric | 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 | 15.07 % | 13.95 % | 16.66 % |
| Gross Margin | 19.09 % | 17.54 % | 20.38 % |
| R&D to Revenue | 3.63 % | 4.07 % | 4.04 % |
The favorable yet varied profitability ratios reflect ongoing commitment to refining operational efficiency and capitalizing on R&D to foster innovation-led growth.
Price Development 📈
Dividend Scoring System 🗣️
| Category | Score | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
Rating ⭐
RTX Corporation presents a compelling dividend proposition with a reliable track record and operational efficacy. Despite moderate yield growth, its consistency fortifies its stature as a robust investment for dividend-centric portfolios. Recommended for investors prioritizing sustained income and sector stability.