Raytheon is off to a strong start

Article Excerpt

RAYTHEON TECHNOLOGIES CORP. $78 is a buy. The company (New York symbol RTX; Conservative-Growth Payer Portfolio; Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $117.0 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger of United Technologies Corp. (old symbol UTX) and Raytheon Co. (old symbol RTN). The combined firm is a leading maker of commercial aircraft equipment, electronic systems for military aircraft and radar systems, and guided missiles. It pays investors a quarterly dividend of $0.475 a share. The annual rate of $1.90 yields 2.4%. Investors can expect Raytheon to earn between $3.40 and $3.70 a share in 2021. The stock has gained over 50% since the merger, but still trades at a reasonable 22.0 times the midpoint of that range. Raytheon Technologies is a buy. buy…