Is RTX the Best Dividend Stock for You?
's (NYSE: RTX) mix of commercial aerospace businesses makes it attractive for dividend investors. The defense business is known for its solidity thanks to its highly creditworthy customers. Meanwhile, its airplane engines (Pratt Whitney) generate aftermarket earnings for decades, and its commercial aerospace component business (Collins Aerospace) is a critical player in servicing both original equipment and aftermarket demand. That all points to long-term earnings generation and dividend growth.
Still, is it the best dividend stock for investors?
A company needs earnings and cash flow growth to grow dividends. RTX has both, but I think there are some concerns about its growth prospects, specifically its 2025 free cash flow (FCF) target of $7.5 billion. I have three specific points to address.
Source Fool.com
