Wednesday, October 9, 2013

Dividend Increase: UTX

United Technologies (UTX) is increasing its quarterly dividend by 10.1%, from $0.535 to $0.589 per share, putting the company on track for its 20th consecutive year of dividend growth (news release). Given that I own 25 shares of UTX, my quarterly dividend increases from $13.38 to $14.73 and my yield on cost becomes 3.30%. The extra $5.40 in annual dividend income raises my forward 12-month dividend total to $2,904. Thus far this year, there have been dividend increases for 28 of the 31 stocks in my portfolio.

6 comments:

  1. Hi DGI, Its very nice to see all or most of the holdings have been announcing the dividend increases. Although we can't really see or be sure about the future. Lets hope the dividend increases are on track going forward for years to come.

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    1. Anonymous: Yes, it's great to see dividend increases from nearly all of my companies. I'll likely finish out the year with all but one stock (INTC) increasing its dividend.

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  2. You just gotta love those raises. You wake up one morning and BAM you got a raise to your income. With how jobs are going these days thats becoming harder and harder to get day job wise. But luckily we can control our own destiny.

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    1. PMU: Seeing a dividend increase announcement is always a highlight of my day. If I'm lucky, at my day job I'll get one raise each year. With my dividend growth portfolio, I get dozens of raises during the year. It's very motivational!

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  3. UTX has a weird dividend increase timing. They like to increase it every 5 quarters or so instead of the usual yearly raise. I wonder what the logic is with that. Over the last 10 years or so the increases have been pretty big though which makes up for it.

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    1. Captain: I don't know why they follow a 5-quarter dividend increase pattern -- it must be something they started a long time ago and just decided to stick with it. However, I'll happily settle for steady dividend growth, even if it's delayed by a quarter.

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