Should Raytheon Raise Its Dividend?

Should Raytheon Raise Its Dividend?

Shares of Raytheon (NYSE: RTN) have climbed 29% so far this year, giving investors in the company little reason to complain. But one side-product of the soaring stock price is a rather pedestrian 1.64% dividend yield. Given the company's suddenly inflated valuation, trading at more than 25 times trailing 12-month earnings for the first time in recent history, does Raytheon need a dividend boost to entice new investors and keep the rally going?

An aerial view of the Pentagon. Image source: Getty Images.

DATA SOURCE: YAHOO! FINANCE. LAST INCREASE REFERS TO EX-DIVIDEND DATE.

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Source: Fool.com