March 16, 2017

United Technologies Makes An Attractive Dividend Stock


United Technologies has four attractive business units.

HVAC and Otis Elevator business benefit from oligopolies and increasing residential construction and urbanization.

Pratt & Whitney and aerospace divisions have high barriers to entry and bright long-term growth prospects.

Last year, we added United Technologies (NYSE:UTX) to our dividend portfolio. We think the company has an attractive collection of businesses that should allow it to continue to pay a substantial and growing dividend (current yield as of this writing is 2.35%) far into the future.

The company has four business segments - Otis; UTC Climate, Controls & Security; Pratt & Whitney; and UTC Aerospace Systems. Each accounts for about a quarter of the company's profits except Pratt & Whitney which is a bit smaller and the UTC Climate business which is a bit larger.

What we want to focus on is the competitive position of United in each of its business segments and their long-term growth prospects.




No comments:

Post a Comment