RTX Announces 68-Cent Quarterly Dividend, Underlining Financial Stability

2025-06-28 companies

Arlington, Saturday, 28 June 2025.
RTX declared a 68-cent dividend per share, payable on September 4, 2025, continuing its 89-year tradition of annual dividend distributions, a testament to its enduring financial health.

Dividend Details and Payout Schedule

On June 27, 2025, RTX Corporation (NYSE: RTX) announced that its Board of Directors has declared a quarterly cash dividend of 68 cents per share of its common stock. This dividend will be payable on September 4, 2025, to shareholders of record as of August 15, 2025. The company has successfully maintained an 89-year streak of annual dividend payments since its founding in 1936, which underscores its stability and commitment to shareholder value [1][6].

Financial Health and Growth Prospects

RTX’s announcement comes on the heels of robust financial performance in 2024, where the company reported sales exceeding $80 billion. With a backlog valued at $218 billion as of 2024, encompassing $125 billion in commercial aviation and $93 billion in defense contracts, RTX projects a strong outlook. Moreover, its free cash flow is anticipated to rise to between $7.0 billion and $7.5 billion in 2025, up from $4.5 billion in 2024 [1][4]. The firm’s diversified portfolio, including Collins Aerospace and Pratt & Whitney, plays a crucial role in sustaining its financial health and competitive edge [4][7].

Market Impact and Investor Confidence

The market’s response to RTX’s financial announcements has been positive, with the company’s stock experiencing an increase in value. On June 27, 2025, RTX stock closed at $144.66, marking a rise of 1.39% from the previous day [2]. Institutional confidence remains high as hedge funds and major investors own 86.50% of RTX’s stock, indicating robust institutional backing [5][6]. This reiterates market confidence in RTX’s management and future growth prospects despite current economic challenges [6].

Long-Term Outlook and Strategic Focus

Looking forward, RTX plans to decrease its payout ratio from the current 71.48% to 39.8% by fiscal 2026, a strategy that aligns with its earnings per share forecast of $6.84. This move reflects management’s confidence in generating higher profits and sustaining dividend growth. Additionally, a continuous effort is being made to navigate geopolitical risks while meeting its backlog commitments, ensuring a sustainable financial pathway for the corporation [3][4].

Sources

dividend declaration RTX stock