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.




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