RTX Raises Quarterly Dividend 7.4% to $0.73

RTX raised its quarterly dividend 7.4% to $0.73 a share from $0.68. Shares traded ex-dividend on May 22, 2026, and the new rate equates to an annual dividend of $2.92 a share.

Why the dividend changed

RTX’s board announcement disclosed the increase but did not identify a specific operating trigger. The financial backdrop was favorable, however, with the aerospace and defense company reporting higher sales, earnings and cash generation shortly before the declaration. RTX’s first-quarter results showed sales of $22.1 billion, up 9 percent, and adjusted earnings per share of $1.78, up 21 percent. Free cash flow was $1.3 billion, while the backlog reached $271 billion.

RTX also raised its full-year adjusted sales and earnings outlook after the first quarter while confirming its free-cash-flow guidance. Chief Executive Chris Calio attributed the quarter’s performance to execution across all three operating segments and said the company was investing to increase output and accelerate new capabilities. Those results provide operating context for the increase, though the dividend release did not explicitly connect the board’s decision to a particular metric.

Management subsequently reiterated its capital-allocation hierarchy. On the second-quarter earnings call, executives said investing in the business remained the first priority and reaffirmed their commitment to the dividend. That positioning treats the payout as a recurring capital-return obligation funded after operational investment needs. RTX’s earnings-call transcript records that commentary.

Dividend track record

The increase continues a measured pattern of annual dividend growth. RTX distributed $1.89 a share in 2020, followed by $2.01 in 2021, $2.16 in 2022, $2.32 in 2023, $2.48 in 2024 and $2.67 in 2025. The annual increases were 6.2% in 2021, 7.7% in 2022, 7.4% in 2023, 6.9% in 2024 and 7.7% in 2025. The five-year annualized dividend growth rate is 7.4%.

The quarterly history shows step-ups rather than irregular changes. RTX paid $0.63 on the November 15, 2024, and February 21, 2025, ex-dividend dates. The rate moved to $0.68 beginning with the May 23, 2025, ex-dividend date and remained there through February 20, 2026. Payments associated with the May 22, 2026, and August 14, 2026, ex-dividend dates were $0.73.

RTX has increased its dividend for 55 consecutive years. Its last annual dividend cut was in 1992. The record indicates a long-running preference for regular, moderate increases rather than variable distributions.

Is the dividend covered?

The dividend consumes 49% of earnings. That leaves more than half of earnings outside the dividend, providing room for reinvestment, debt service and other corporate uses without requiring the entire profit stream to support the distribution.

SmarterDividends rates the dividend A, with a safety score of 95. That falls within the “very safe” range of 80-100 and indicates that a cut appears unlikely under ordinary operating conditions. The assessment is consistent with the earnings payout ratio, the established growth record and RTX’s recent improvement in cash generation. It does not guarantee future payments, which remain subject to board approval and business conditions.

Yield and valuation

At a share price of $191.90, RTX’s annual dividend of $2.92 produces a forward yield of 1.52%. That is below the Industrials sector median forward yield of 1.61%, so the shares provide less current dividend income per dollar invested than the sector median.

SmarterDividends estimates fair value at $117.34 and classifies RTX as overvalued. The estimate represents downside of 40% to fair value from the stated share price. The gap helps explain why the forward yield remains below the sector median despite the higher dividend rate: the share price is elevated relative to both the annual payout and the fair-value estimate.

What to watch

The principal coverage test is whether RTX converts its expanding backlog into earnings and cash. In the second-quarter results, issued after the increase, the company reported $2.9 billion of free cash flow and a $289 billion backlog. Management also raised its full-year outlook for adjusted sales, adjusted earnings and free cash flow. Future quarterly reports will show whether that operating momentum and cash conversion persist.

Investors can also monitor execution across Collins Aerospace, Pratt & Whitney and Raytheon, including capacity expansion and delivery rates. RTX’s agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million is another capital-allocation item to track. The next board declaration will indicate whether the $0.73 quarterly rate is maintained, while the next annual increase will determine whether the 55-year growth streak continues.