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.
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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