TS2B: Tech Stocks 2 Buy, Dividends to Build On Edition for Raytheon Technologies 10.26.20

Good Monday morning everyone and welcome to the BCB Cyber Series that takes on the Tech stocks that can provide the cyber-fuel we need to pursue our digital wealth passions.

Today we are tackling those big dividend payers that can add passive cash flow to our portfolios. As we dig for the cyber-fuel we need, we are always working to make sure the best of the best, those monster companies in tech play, form a key portion of our portfolios.

For Dividend Payers, BCB Cyber is always looking for a forward annual dividend yield of over 3%. As always though, we dig deeper still, looking for those companies that are pushed by incredible disruptive tech with a great story, not to mention having a solid base in the numbers.

Tech-Monarch & Dividend Aristocrat

With some of the biggest names in industrial technology, Raytheon Technologies presents four massive sub-companies that are pushing the boundaries of tech deployment in Aerospace, Defense, and Engineering. After a recent mega-merger, the new companies held within this Tech Leader are:

1. Collins Aerospace
2. Pratt & Whitney
3. Raytheon Intelligence & Space
4. Raytheon Missiles & Defense

Raytheon isn’t just your normal tech giant in the industrials with a massive industry impact, it is also, when considering its history as United Technologies Corporation pre-merger with Raytheon, a recognized Dividend Aristocrat. Meaning that this company, a cash dividend payer since 1936, has a current track record of 25+ years of consecutive dividend increases and is included with the “best of the best” dividend growth stocks.

Massive Mega-Tech Merger

Before we dive too deep though, we strongly advocate that we don’t act solely on anyone else’s opinion, even ours! Make sure we are all thinking for ourselves as self-definers and making our own decisions. In the end, the responsibility is on each one of us as individuals. So decide wisely!

BCB Cyber: Mega-Cap Analysis

Jumping right in the BCB Cyber way, we cover 3 quick pieces of important information so we can get moving on our day. First, we tackle the story to find out who and what the company is, second, we look at the numbers both positive and negative, and finally we discuss our position on the stock.

This is TS2B, Tech Stock to Buy, Dividend Payer edition, and this week we are going to take on Raytheon Technologies, the Waltham, Massachusetts disruptive tech play redefining Aerospace and Defense with a mega-merger of equals for the ages.

1 – STORY

The story for Raytheon Technologies (RTX) is one of growth, opportunity, and surprising value. Most importantly, RTX, like Alteryx 2 weeks ago, and Tesla last week, hits all the checklist boxes we love to see in a disruptive tech company.

The story for RTX begins as a mega tech giant with a long growth history.

In addition, due to the current climate it presents an unusual value proposition for cyberized investors looking to add a passive income stream to their portfolios…

Perhaps most importantly, is that in RTX, we see a management team ready and willing to be on top of the situation and provide the dexterity necessary to navigate tough times.

2 – BY THE NUMBERS

BCB Cyber loves to follow five specific metrics: Revenue Growth, Forward Price to Earnings Ratio, Return on Assets, Operating Margin, and Debt Considerations. While RTX does have a few risk factors, it does also hit on several other key metrics: strong revenue growth history, a promising value proposition, a positive Return on Assets, a positive Operating Margin, and a solid, growing cash flow alongside investment that will help with debt considerations.

A solid growth profile in revenue…

A value proposition in Current Forward P/E of 17.04 representing a discount to the market and even more significant a Price to Book in the most recent quarter of 1.43 representing a deep value to the past! Not to mention an incredible buy based on the sales proportions!

Strong Operating Margin, one of the best we’ve seen, and a quality return on Assets…

A balance sheet that needs monitoring but a strong cash position nonetheless.

Finally, as a dividend payer, BCB Cyber loves to see the over 3 percent forward annual dividend yield and RTX currently has a yield of 3.04%. And don’t forget there is another opportunity for a passive income payout coming in November!

3 – THE BCB CYBER TAKE

As of this morning, on 10.26.20, my own portfolio has a position of 9.73% in RTX. This is definitely a dividend payer worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire! As always, think for yourself, do your own homework, and cyberize your life with the best in disruptive tech. Learn more in our Wealth Section and dive deeper with Establishing the Baseline!