Awhile back Lou said they will continue to raise it after 5 quarters. They will pay the same div for 5 qtrs. and then raise it. If they hold true to their statement, the next increase will be with the March 2015 payment.
UNITED TECHNOLOGIES CORP increased its bottom line by earning $6.22 versus $5.35 in the prior year. This year, the market expects an improvement in earnings ($6.86 versus $6.22). This is a great buy on the recent pullback.....I'm in.........
Read that US oil production is the highest in 28 years, gasoline will be below $3.00 in Florida where I will be buying my gasoline this winter. Electricity in CT costs 54% more than in FL........Kid
are going to be ordered and needed to ramp up the fight against ISIS ....or ISIL.......or whatever the president wants to call them....no reason to make it any more complicated than that......Forward PE 14.4 ....ROE 19% and governments around the world are gearing up to hell fire missile the bad guys to kingdom come......Isn't humanity great.!!!!! As the great Bill Hicks once said, " What's going to happen to the arms industry when everyone finds out that we are all one consciousness" ........I'm in ........
ctb,.....I'm getting more comfortable with oil consumption, we were led to fear running out of oil in our lifetime. That was a false premise, but, we have improved our efficiencies in energy usage and are using oil more wisely. Diesels have been improved to reduce emissions, in the process, fuel economy improved greatly . Diesel engine oil injection pressures are above 20,000. PSI, unbelievable. Airliners have also seen tremendous improvements in passenger miles per gallon of fuel. Man has been around for a long time and has been able to adapt to changing conditions, I think that will continue. Now, if we could get mankind to give up religion entirely, there may be more peace and tranquility on the planet........Kid
No surprises here, at least to anyone who is a long term follower. Every 5th quarter the dividend gets a bump.
low oil is good across far more than the cruise lines, Kid. Only place it hurts in the short term is in ongoing conservation efforts, we so quickly forget $4.50 and higher gas prices.
...United Technologies Corp. (NYSE: UTX) should be raising its dividend in October, by our estimate. The conglomerate is expected to bring in close to 10% earnings growth in 2014 and in 2015, and its dividend growth was 10% in 2013, after dividend growth of over 11% in 2012. A 10% dividend hike would go up to $0.65 per quarter per share — or about 38% of adjusted earnings in 2014, or just under 35% of adjusted earnings expected in 2015. The current dividend yield is roughly 2.2%, but United Tech may have GE-envy for a Dow conglomerate with a dividend that need to be raised. The company raised its dividend last October, and it is going on what likely will be 20 years of dividend hikes.
For those that didn't read the comment, this is what I am referring to: Sept 16 (Reuters) - U.S. manufacturer United Technologies Corp (UTX) is looking for large acquisitions, but does not see a wealth of opportunities with the soaring stock market driving up prices, the company's chief financial officer said on Tuesday.
"We continue to look for opportunities to do large-scale M&A," United Technologies Chief Financial Officer Greg Hayes told an investor conference. "At $65 billion (in annual revenue), you have got to do bigger deals to move the needle."
But when asked how he viewed the deal pipeline, Hayes responded: "Not terribly robust."
United Technologies' products fall under two areas: aerospace, including Pratt & Whitney jet engines and Sikorsky helicopters; and commercial buildings, including Otis elevators and Carrier climate control systems.
Hayes' comments echoed those he gave at United Technologies investor meeting in March, when he said the company was more focused on bigger deals, but did not expect to strike such a deal in the near-term.
These company execs never get it. Sometimes it is better to remain quiet and be thought a fool then to open ones mouth and remove all doubt. UTX's CFO made a public comment that there aren't any promising looking acquisitions at this time. Duh!!! He didn't think the stock would drop? If he had to remark on the subject he could have said something like this "We are currently sitting on a large cash position and waiting patiently for just the right acquisition that will fit our profile! This would have been looked at favorably rather than negatively. They just don't get it!
... Sikorsky Aircraft Corp. – a unit of United Technologies (UTX-Free Report) – won a $203.6 million order from the U.S. Army for 18 UH-60M Blackhawk helicopters for the Mexican Air Force under the foreign military sales program. Estimated completion date is May 30, 2016.
This morning I noticed yet another UTX review saying BUY with a target of $118. Call me skeptical, but it seems that you can throw darts at the board and get as much concensus / wisdom as the various analysts provide.
I am kicking myself for not dumping more at 120. Now, I am hoping that it goes down to 100 which, I think, would be a great buy price.
For one long year, United Technologies (NYSE: UTX ) stock has budged not at all -- or so you might think.
At $108 and change, shares of United Technologies are up less than one single percentage point after 52 weeks of trading. It almost seems as if the stock of one of the world's great industrial conglomerates has sat idly by while the rest of the S&P 500 soared 18%.
But in fact, United Technologies stock has had quite a wild ride over this past year.
ow back essentially where the stock started one year ago, it's time for investors to ask: What are the chances United Technologies will succeed in playing catch-up with the rest of the market once more? And should investors try to catch a ride on this train before it departs the proverbial station?
Let's crunch a few numbers and see if we can figure out an answer to that question.
Valuing United Technologies stock
Priced at 17.1 times earnings (according to data from S&P Capital IQ), but expected by most analysts to grow these earnings at only 10% annually over the next five years, United Technologies stock looks pretty expensive today -- even after it's gone all the way back to square one. Simply put, if "value investors" prefer to buy stocks at PEG ratios of 1.0 or less, then United Technologies' valuation of 1.7 is probably too much to pay.
And this is before you notice that United Technologies stock is burdened with $15 billion in net debt -- giving UTC an enterprise value 15% more expensive than its market capitalization. It's also before you consider that free cash flow at United Technologies currently lags reported net income at just $5.5 billion in FCF, versus $5.8 billion reported "profits."
Result: UTC's light free cash flow number and its heavy debt load add up to an enterprise value to free cash flow ratio of nearly 21 on United Technologies stock.
Hope springs eternal
Admittedly, there are factors that have been weighing down United Technologies stock of late -- factors that could change in the future. For one thing, the company took a large charge to earnings this year over complications with its contract to deliver 28 Cyclone-class maritime helicopters to the Canadian government. That charge pushed UTC's entire Sikorsky helicopter division into the red for its results year to date.
That being said, the contract appears back on track today. Moreover, Sikorsky has landed multiple new, billion-dollar-plus contracts in recent months to build helicopters for everyone from the U.S. Air Force to the Turkish government. It also recently secured a refresh of its five-decade-long franchise building "Marine 1" helicopters for the U.S. President.
In short, things are looking up for Sikorsky -- and not just for Sikorsky. Otis Elevator, UTC's most profitable division and one of its bigger businesses, just recorded 44% more orders for elevators in the key North American market in Q2 than it did in the second quarter of 2013. 44% year-over-year growth? That has to be good for the stock. And overall, sales are up for United Technologies as a whole, too.
... but reality still bites
All of that being said, take all the good news coming out of United Technologies today, tally the numbers -- and analysts are still estimating only 10% earnings growth over the next five years. At the end of the day, that's simply not fast enough growth to justify paying nearly 21 times free cash flow for this business.
Long story short, while there may be a lot to like about United Technologies stock, the stock price is not one of them. So, to answer the question we asked at the beginning: No, I would not be a buyer at these levels.
Don't forget the dividend
United Technologies stock may not be a buy -- but with a 2.2% dividend yield, it may not be a sell, either. The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio.