United Technologies (UTX) has paid increasing dividends for 45 years. The company has compounded investor wealth at 13.7% a year (including dividends) over the last 25 years.
United Technologies is one of the largest publicly traded diversified industrial goods manufacturers in the world. The company was founded in 1934 and has grown to reach a market cap of nearly $90 billion.
United Technologies business Overview
The company operates in 5 segments. Each segment is listed below along with the percentage of total operating profits produced for United Technologies in fiscal 2014:
Otis is the world's largest elevator and escalator manufacturing, installation, and service company.
UTC Climate, Controls, & Security is the leading provider of HVAC and refrigeration solutions. The segment owns the Carrier and Kiddie brands, among others.
Pratt & Whitney is one of the world's largest suppliers of aircraft engines for both the commercial and military markets.
UTC Aerospace Systems provides advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, military, space, and undersea markets.
Sikorsky is one of the world's largest helicopter manufacturers. The segment's margins and operating profits were down significantly in 2014 versus 2013. United Technologies recently announced it would sell its Sikorsky division to Lockheed Martin for $9 billion. The company's management will use funds the money from the sale for share repurchases.
Recent Weakness & Wall Street Woes
Wall Street did not take kindly to United Technologies second quarter earnings and announcement of the Sikorsky divestiture. The company's stock declined 7.1% in one day. The decline was due to the Sikorsky divestiture and news that both the Otis and UTC Aerospace segments' profits are expected to be lower than management previously anticipated.
