It is not every day that a company is added to the Dividend
Aristocrats. To become a member of this group, a company must increase its
dividend for at least 25 consecutive years. The Dividend Aristocrats are such
an exclusive group, that there were only 53 such companies with this title as
of the end of 2018.
Four companies were added to the Dividend Aristocrats list
in 2019, including industrial giant United Technologies (UTX).
United Technologies gave investors a 5% dividend increase
last October. The stock currently yields just under 2.6%, but well above the 2%
yield of the S&P 500. This article will examine if its dividend history and
business performance is enough to warrant purchasing shares of the company.
Business Overview
United Technologies was founded in 1934. Today, the company
has more than 200,000 employees around the world, and the stock has a
market capitalization of nearly $100 billion.
United Technologies is a commercial aerospace and defense
company. For the time being, United Technologies is composed of four business
divisions: Pratt & Whitney, which manufactures and services engines for
commercial and military customers; Otis, the world’s largest producer and
servicer of elevators and escalators; UTC Climate, which produces HVAC
equipment; and UTC Aerospace, which creates aerospace and industrial products.
This is a period of great change for United
Technologies. After spinning offing certain businesses, United
Technologies will be composed of two business divisions: Pratt & Whitney
and Collins Aerospace Systems, which creates aerospace and industrial products.
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