) has increased its quarterly dividend by 10%, bringing the
annualized dividend to $2.20 per share from the previous payout
of $2.00 per share.
Following the hike, the company will now pay a quarterly dividend
of 55 cents as against the 50 cents paid earlier. The said
dividend will be paid on May 2, 2013, to shareholders of record
as of the close of business on Apr 3, 2013. This increase would
generate a dividend yield of 3.86% based on the current market
This is the company's ninth consecutive annual dividend increase.
Last year, in Mar 2012, the company had increased the quarterly
dividend by 16% to 50 cents per share. The uninterrupted dividend
increase demonstrates the financial strength and the company's
dedication to a balanced capital deployment strategy.
Other stocks that recently increased their dividend to compete in
the market are
General Dynamics Corporation
) with a quarterly hike of 9.8% to 56 cents,
L-3 Communications Holdings Inc.
) with a rise of 10% to 55 cents and
Parker Hannifin Corporation
) increasing its payout by 4.9% to 43 cents.
Raytheon maintains a strong focus on program execution and the
prudent management of capital and investments. Its capital
deployment strategy balances funding for business growth on the
one hand and returning cash to shareholders on the other. The
growth of the business is supported by capital expenditures,
acquisitions, and prudent balance sheet management, including
debt repayments and pension contributions. Shareholder wealth is
generated through share buybacks and dividend payments.
As a part of a previously announced share repurchase program, the
company repurchased 1.8 million shares of common stock for $100
million in the fourth quarter of 2012. For full-year 2012, the
company repurchased $15.9 million shares for $825 million. As of
Dec 31, 2012, Raytheon had approximately $1.3 billion remaining
under this repurchase program.
In spite of the declining trend in U.S. defense spending,
Raytheon is one of the best-positioned companies in the sector.
The company enjoys strong order bookings and order backlog, an
improving balance sheet, growing cash flow and operational
However, these postives are offset by uncertainity related to the
U.S. defense budget, the fate of high-cost programs, risks
related to key project executions and order cancellations. The
company presently retains a short-term Zacks Rank #3 (Hold).
Based in Massachusetts, Raytheon Company is one of the largest
aerospace and defense companies in the U.S., with a diversified
line of military products, including missiles, radars, sensors,
surveillance and reconnaissance equipment, communication and
information systems, naval systems, air traffic control systems,
and technical services.
GENL DYNAMICS (GD): Free Stock Analysis
L-3 COMM HLDGS (LLL): Free Stock Analysis
PARKER HANNIFIN (PH): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
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