Topic: How To Invest

Dividend Advisor Hotline – Friday, February 7, 2020

Article Excerpt

UNITED TECHNOLOGIES CORP., $156.83, New York symbol UTX, is a buy. United Technologies will soon merge with Raytheon Co. (New York symbol RTN), a leading maker of electronic systems for military aircraft and radar systems. It’s also the world largest maker of guided missiles. Under the terms of the deal, Raytheon shareholders will receive 2.3348 shares in the combined company for each RTN share they hold. Those shareholders will own 43% of the new company—called Raytheon Technologies Corp. (New York symbol RTX); United Technologies investors will own the remaining 57%. The merger will let the combined firm cut $1 billion from its annual costs by the end of the fourth year. The bigger company will also be in a better position to compete for new defence contracts. United Technologies has told investors that it still plans to spin off its Otis (elevator) and Carrier (heating and air conditioning equipment) operations before it merges with Raytheon. Over time, spinoffs tend to work out well for…