Diversified business conglomerate
United Technologies Corp.
) recently declared a 10% year-over-year hike in its quarterly
dividend payout to 58.9 cents per share for the fourth quarter.
Thus, the dividend on annualized basis now stands at $2.36 per
share. The fourth quarter 2013 dividend is payable on Dec 10 to
shareholders of record as of Nov 15.
Based on the closing price of $102.84 as of Oct 9, the proposed
dividend affirms a yield of 2.3%. A steady dividend payout
facilitates the long-term strategy of United Technologies to
provide attractive risk-adjusted returns to its stockholders. In
addition, decent dividend increases at periodic intervals have
been one of the company's most attractive features.
The company had earlier hiked its dividend in third quarter 2012,
when it raised the quarterly dividend payout from 48 cents to
53.5 cents per share or from $1.92 to $2.14 on an annualized
basis. Prior to that, United Technologies raised its quarterly
dividend in second quarter 2011 from 42.5 cents to 48 cents per
share, which equated to an annualized increase from $1.70 to
The company also has a share repurchase program in place, under
which it repurchased shares worth $670 million as of Jun 30,
2013. Over the years, United Technologies has consistently
returned significant cash to its shareholders through dividends
and share repurchases.
Based in Hartford, CT, United Technologies provides high-end
technology products and services to the building systems and
aerospace industries worldwide. The company is a diversified
business conglomerate, serving various end markets such as
aerospace, defense and commercial construction. The business
diversification allows the company to remain profitable amid
tough economic times.
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 presently has a Zacks Rank #3 (Hold). Other
players in the industry worth mentioning include
LSB Industries Inc.
), each carrying a Zacks Rank #2 (Buy).
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