RTX Corp Offers Competitive Dividend Yield Above 2%

In Tuesday’s trading, shares of RTX Corp (Symbol: RTX) yielded more than 2% based on its quarterly dividend, which is annualized at $2.72. The stock was priced as low as $135.88 during the day. Dividends are crucial for investors, as they historically contribute significantly to total returns in the stock market.

For example, if you had purchased shares of the S&P 500 ETF (SPY) on December 31, 1999, at a price of $146.88 per share, by December 31, 2012, those shares would have been worth only $142.41—a decline of $4.67 per share over that span. However, during the same period, you would have received dividends totaling $25.98 per share. This boosts the overall return to 23.36%. Even with dividends reinvested, the annual total return averages about 1.6%. Thus, securing a yield above 2% from a company like RTX appears notably attractive, assuming its sustainability.

As an S&P 500 company, RTX Corp holds a prominent position among large-cap firms within the index. However, dividend amounts can be unpredictable and often fluctuate with profitability. Examining RTX Corp’s dividend history can provide insights into the likelihood of maintaining the current dividend and achieving a sustainable 2% annual yield.

The potential consistency of dividends is important for investors when considering future performance. Keeping track of historical data can assist in making informed investment decisions, particularly concerning dividend sustainability.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.