RTX raises quarterly dividend by 7.9%

ARLINGTON, Va. - RTX (NYSE: RTX), a major technology and defense company with a market capitalization of $171 billion, has announced an increase in its quarterly cash dividend. The Board of Directors declared a dividend of 68 cents per outstanding share of RTX common stock, marking a 7.9 percent rise from the previous quarter’s dividend. Shareowners on record by the close of business on May 23, 2025, will be eligible for the dividend payout scheduled for June 12, 2025. According to InvestingPro data, RTX has maintained dividend payments for 55 consecutive years, with a current dividend yield of 2%.

Chairman and CEO Chris Calio expressed the company’s optimism, stating, "Today’s dividend increase reflects our confidence in executing on RTX’s robust backlog, the long-term cash generation power of our company, and our continued commitment to returning capital to shareowners."

The announcement underscores RTX’s consistent history of rewarding its shareholders, with the company having paid cash dividends every year since 1936. This increase is seen as a reflection of RTX’s financial health and its ability to generate cash over the long term.

RTX, with a workforce exceeding 185,000 globally, operates key businesses in the aerospace and defense sectors, including Collins Aerospace, Pratt & Whitney, and Raytheon. These segments work on advancing aviation, engineering integrated defense systems, and developing next-generation technology solutions. The company reported sales surpassing $80 billion in 2024 and is headquartered in Arlington, Virginia.

The press release also included a cautionary note, reminding investors that forward-looking statements such as those regarding dividends are subject to risks, uncertainties, and assumptions. These statements do not guarantee future dividends, which may vary significantly from past dividends due to various factors, including those detailed in the company’s SEC filings under the "Risk Factors" section.

This dividend declaration by RTX is based on a press release statement and represents the company’s current financial strategy and shareholder return policy.

In other recent news, RTX Corp reported its Q1 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $1.47 compared to the forecasted $1.35. The company’s revenue also exceeded projections, reaching $20.3 billion against an expected $19.82 billion. Despite these positive results, the stock experienced a decline in pre-market trading. In other developments, UBS raised the RTX stock price target to $138 from $133, maintaining a Buy rating, while Morgan Stanley upgraded the stock from Equal-weight to Overweight with a new price target of $135. Both firms expressed confidence in RTX’s ability to mitigate the impact of tariffs over time.

Additionally, RTX is involved in a potential $100 billion arms deal with Saudi Arabia, which is expected to be announced during President Trump’s visit to the kingdom. This deal could significantly benefit U.S. defense contractors, including RTX, through the provision of advanced weapons systems. Furthermore, RTX is among the companies considered for a contract to modernize the U.S. air traffic control system, as noted by President Trump. This initiative aims to replace the outdated system with a more efficient and safer version, potentially involving major companies like Raytheon Technologies and IBM.

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