RTX Corporation (RTX)

[bar1080]

Just noticed OTIS declared its first dividend a week ago:

"FARMINGTON, Conn., May 6, 2020 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) Board of Directors today declared a quarterly dividend of $0.20 per share of Otis' common stock. The dividend will be payable on June 10, 2020, to shareholders of record at the close of business on May 22, 2020." That's about 1.6% yield.

https://finance.yahoo.com/news/otis-declares-quarterly-dividend-0-000000428.html

[fung_derf]

Looks like I bought on 4/3 so didn't qualify for it. Thought I would.

[bar1080]

Both CARRier and OTIS showed up in the April brokerage statement I got a few days ago. Letters dated April 3 said I would get one share of Carrier for each of my UTX shares and 1/2 share of OTIS for each UTX share. Previously I got a fairly large amount of cash too.

Spinoffs can be annoying, especially the ATT ones from the 1980s Bell breakup. But they can be quite profitable if held long-term. Studies have shown that spinoffs often outperform the S&P and the firms they were spun off from.

Both spinoffs are quite sizable: OTIS $22 billion market cap. Carrier is $16 billion. Both should pay dividends, but I don't believe the amounts have been announced quite yet.

[fung_derf]

What was the date you had to be a shareholder? I notice I didn't get any spinoffs. Probably just as well as selling off pieces is more of a hassle.

[bar1080]

RTX spinoff Carrier up 12% today, record high, as 1Q results were released.

https://seekingalpha.com/article/4345015-carrier-global-corporation-2020-q1-results-earnings-call-presentation

[Taurus69]

$rtx $57.01

[fung_derf]

Guessing if I told you that you should sell, you'd just give me a lecture on what would Warren Buffett do?

[bar1080]

"Raytheon Sees Slow Aviation Recovery But Backs Dividend As Earnings Crush Views"

"Dow Jones stock Raytheon Technologies reaffirmed its commitment to paying dividends and crushed Q1 earnings views, but joined customer Boeing and jet-engine rival General Electric in seeing a slow aviation recovery. Raytheon stock reversed lower. The earnings report is the first since United Technologies and Raytheon completed their merger and spun off Carrier Global and Otis Worldwide to become an aerospace pure-play stock."

https://finance.yahoo.com/m/a2f6a2c8-c111-3853-b8e4-d3ea102616ff/raytheon-sees-slow-aviation.html

[Taurus69]

$rtx $59.0

[fung_derf]

you do realize the share price shows up on each page, right?

[Taurus69]

$rtx $58.85

[fung_derf]

Out of RTX now. Gave back about $30k in profit, but made about 14% in a month. Greed will getcha, but I really thought $71 was easily attainable.
According to Buffett, the world has changed. So has my trading strategy.

[Taurus69]

$rtx $61.11

[Dankshydro]

Great long term play here

[fung_derf]

Crescent is gone now as they went back private. It was the brainchild of Richard Rainwater. Below is a pic of the Crescent Hotel and offices in Dallas. It also owned some Country Clubs and various other land deals. One of my favorite IPO's ever as in Dallas/Ft Worth area, you could get as many shares of the IPO as you wanted, and this was back in the days when you had to beg to get IPO shares. The stock opened at $22 and if I recall correctly, was bought back private a couple years later at $43. That plus the 6% dividend per year made it a great money maker.
I knew Richard through the Texas Rangers as we both owned a piece of the team.
You should Google Richard. Quite the story. And I think you would have liked him.

[bar1080]

"That one and Crescent" What is Crescent? I see a bunch of stocks with crescent in their name.

Great few days for Raytheon-type stocks. I'm largely giving up on BA, which has more problems than any company should. Holding it, not adding.

[Taurus69]

$rtx $65.39

[fung_derf]

Man, I bought SPG when it was an IPO. That one and Crescent seemed like sure things. They were for a while. Now I wouldn't touch it.

[bar1080]

Simon Properties malls start opening May 1, What could go wrong with that?
I'd love to visit one... but only to see who's coming in.


"With states like Colorado, Georgia, South Carolina, and Tennessee beginning to reopen for business, Simon Property Group intends to open its malls beginning May first and continuing through May 4 depending upon state and local stay-at-home orders.

The email obtained by CNBC identified 36 malls in eight states that would open on the first of the month, followed by 10 more in Indiana on May 2, and three additional locations in Missouri on May 4. Simon operates over 230 malls in the North America, Asia, and Europe.

The malls will operate between 11 a.m. and 7 p.m. Monday through Saturday, and noon to 6 p.m. on Sundays."

https://www.fool.com/investing/2020/04/28/simon-property-group-prepares-to-open-49-malls-beg.aspx

[bar1080]

Simon Properties malls start opening May 1, What could go wrong with that?
I'd love to visit one... but only to see who's coming in.


"With states like Colorado, Georgia, South Carolina, and Tennessee beginning to reopen for business, Simon Property Group intends to open its malls beginning May first and continuing through May 4 depending upon state and local stay-at-home orders.

The email obtained by CNBC identified 36 malls in eight states that would open on the first of the month, followed by 10 more in Indiana on May 2, and three additional locations in Missouri on May 4. Simon operates over 230 malls in the North America, Asia, and Europe.

The malls will operate between 11 a.m. and 7 p.m. Monday through Saturday, and noon to 6 p.m. on Sundays."

https://www.fool.com/investing/2020/04/28/simon-property-group-prepares-to-open-49-malls-beg.aspx

[fung_derf]

It is and getting close to my target. Seems like we may getting closer to the time when bad news would be more hurtful than good news would help.

[bar1080]

RTX near after-spinoff high. Both of RTX's children doing well: OTIS @ $50, CARRier at $17.3. Waiting to learn about their divs.

[Taurus69]

$rtx $63.29

[fung_derf]

I don't know that I like this stock for the foreseeable future. I bought this one as a short term play. My sell target is $74...although not positive I'll even wait that long.
Either way, it was a great play if I don't get greedy.

[bar1080]

SA: "The dividend is still unknown. The new company hasn't declared dividend payment, yet. However, Raytheon and United Technologies paid a growing dividend for decades. My assumption here is that we can rely on a dividend in this case as well. If the company pays 50% of its earnings, the dividend will be $1.9, and with a 25% payout ratio, it will be $0.95. The implied dividend yield will be 1.5-3%. I believe that the entry yield will be closer to the 3% mark, and if the company keeps executing in the long term, it will offer a 5-8% dividend growth."

https://seekingalpha.com/article/4338237-raytheon-technologies-is-decent-addition-to-dividend-growth-portfolio

[bar1080]

"I presume the fat div will be paid for the foreseeable future." Actaully I doubt that's right. Wouldn't the old div be shared among the two new spinoffs, OTIS and Carrier? In any event, the next ex div date is about a month off.

[bar1080]

Almost record high for RTX. $66.00. I presume the fat div will be paid for the foreseeable future.

[Dankshydro]

Nice little AH bounce

[Taurus69]

$rtx Raytheon Technologies Investor Call
May 7, 2020, at 8:30 AM EDT

[Taurus69]

$rtx https://www.rtx.com/

[Taurus69]

$rtx $62.33

[bar1080]

On April 3, 2020 each share of UTX became one share of RTX, one share of Carrier (about $15) and 1/2 share of Otis (about $49).

My UTX shares had been Rockwell Collins (COL) prior to 11-23-18 when they were bought out by UTX for stock and cash.

[Dankshydro]

I’m looking forward to a good week ahead

[boston127]

Very good NEWS on BUY. First resistance

@ $74.50 is also good news. Holding forever. This is a keeper. Every day, it bounces up $3 - $5. Every day. What an easy way to make $$$.

[Dankshydro]

Good share. Thanks

[bar1080]

"Raytheon Receives Buy Rating From UBS on Strong Defense Cash Flow"

"Raytheon Technologies received a buy rating from a UBS analyst, who launched coverage of the aerospace giant saying the company's defense business cash flow "should provide a solid fortress of cash flow" in light of uncertainty caused by the coronavirus pandemic. Raytheon Technologies, the company created by the merger of Raytheon and United Technologies, began trading last week. Analyst Myles Walton, who set a price target of $81 a share, said in a note to investors that he expects "a sharp drop in commercial aftermarket and OEM (original equipment manufacturer) sales in 2020 with lingering declines in 2021 before a likely robust recovery."

https://www.thestreet.com/investing/raytheon-buy-rating-strong-defense-cash-flow

[fung_derf]

First resistance is at $74.50. Other than that, you tell us how many die from Corona Virus and it will be easier to predict a long term price.

[Dankshydro]

Today’s prediction?
Long term predictions?

[bar1080]

Ok, Sikorsky. Thanks

[Alpha611]

Hourly! Sikorsky.

[bar1080]

I have a $20 gold certificate from 1928 a few feet away. But's its gold backing ended around 1933.

RTX was up 8.41% today. The other two UTX spinoffs fell. CARRier tumbled 6.49%. Most of my blue chips are looking much better, especially BRK.

"Remember when gold backing was a thing? If so, you're pretty old."

[bar1080]

Are you a contractor for this "comp?" What kind of work?

[Alpha611]

Work for this comp. looking to retire end of my contract. Need to make some changes my self. Best of luck!

[fung_derf]

I know. And not selling everything. Mostly my retirement account stuff since I can avoid a taxable situation.
I have a fair amount in annuities with downside protection.
Most of the stocks I'll keep are either virus relative or what I'd consider somewhat necessary now.

[fung_derf]

BTW, I can buy CDs through my brokerage up to I think it's $25 million. As long as I'm not buying the same CDs. But as of yet, I'm not worried about a currency failure. Just a much bigger market crash. The government has shown they're not afraid to make cash out of thin air.
Remember when gold backing was a thing? If so, you're pretty old.

[fung_derf]

Well in hopes no one knows where I live, I'll leave that to your imagination. But the vast part of it is in money markets...preferably government ones.

[Alpha611]

Can't say it any better!

[Alpha611]

Personally! I would wait for a couple of (Earnings) Before cashing out.
You will still have more then a few chances then. To move about your cash.
Already up over 6% since its change from 2 days ago.

[bar1080]

How do you define "moving to cash?" Piles of currency? Gold bars? T-bills paying about zero? Bank CDs are good, but there are insurance limits.

Hard to beat a diversified portfolio of blue chips like RTX with bonds and bank CDs.

[fung_derf]

I doubt I'll keep it very long. I'm moving most of my investments to cash. I bought 3000 shares.