RTX (RTX) DIvidends Date & History

Key Takeaways

• RTX Corporation pays a quarterly dividend of $0.68 per share, equating to an annual payout of $2.72 and a trailing yield of 1.57%.
• The payout ratio stands at 51.03%, suggesting strong sustainability backed by earnings coverage.
• Consistent dividend raises, including a recent hike from $0.63 to $0.68, reflect a commitment to shareholder returns.
• Free cash flow (FCF, cash generated after capital expenditures) of $3.2 billion in Q4 2025 supports ongoing payments.
• Yield is competitive within the aerospace and defense sector, appealing to income-focused investors.
• A robust $268 billion backlog enhances long-term dividend stability.

Dividend Overview

RTX Corporation, a leading aerospace and defense company, maintains a quarterly dividend policy, distributing $0.68 per share as of its most recent declaration on February 6, 2026, with an ex-dividend date of February 20, 2026, and payment on March 19, 2026. This results in an annual dividend of $2.72 and a trailing twelve-month yield of 1.57%, based on a recent stock price around $175. The five-year average yield is 2.15%. RTX is positioned as a dividend growth stock rather than a high-yield play, prioritizing consistent increases over aggressive payouts. This approach aligns with its stable revenue from government contracts and commercial aviation, making it attractive for investors seeking reliable income with moderate growth potential.

Dividend History and Growth

RTX has demonstrated a strong track record of dividend growth, raising its quarterly payout annually for over a decade. The dividend per share increased from $0.475 in 2020 to $0.51 in 2021, $0.55 in 2022, $0.59 in 2023, $0.63 in 2024, and $0.68 starting in early 2025. This represents a compound annual growth rate of approximately 8% over the past five years. Payments have remained consistent quarterly without interruptions, even through mergers like the Raytheon-UTC combination in 2020. The company's long-term strategy emphasizes returning capital to shareholders via dividends and buybacks, supported by recurring defense revenues.

Dividend Sustainability and Payout Ratio

RTX's dividend appears highly sustainable, with a payout ratio of 51.03%—well below the 75% threshold often viewed as a cautionary level for coverage by earnings. Free cash flow coverage is robust, highlighted by $3.2 billion generated in Q4 2025 alone, exceeding annual dividend obligations. Moderate debt levels and a record $268 billion order backlog provide visibility into future cash flows. Overall financial stability, including diversified segments in missiles, engines, and avionics, underpins confidence in continued payments without strain.

Dividend Compared to Industry Peers

In the aerospace and defense sector, RTX's 1.57% trailing yield is slightly below peers like LMT at 2.63% (payout 65.38%), GD at 1.92% (payout 38.83%), and NOC at 1.61% (payout 28.97%). Unlike BA, which suspended its dividend, RTX offers a reliable profile. Its growth trajectory positions it competitively for investors balancing yield and appreciation.

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Is This Stock Attractive for Dividend Investors?

RTX Corporation may appeal to conservative dividend investors seeking stability in the defense sector, where long-term government contracts provide predictable cash flows. Its modest 1.57% yield, combined with consistent raises and a sub-60% payout ratio, suits those prioritizing growth over high current income. Income-oriented portfolios could benefit from the quarterly cadence and FCF coverage, especially amid rising global defense spending. However, yield-sensitive investors might look elsewhere for higher payouts, while growth enthusiasts may value the balance of dividends and capital returns via buybacks. The stock fits long-term holders comfortable with aerospace cyclicality, but cyclical risks from commercial aviation warrant diversification. Overall, it offers a balanced profile for patient, risk-averse dividend strategies without excessive volatility.

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