I decided to initiate a new purchase recently in a company that was not already in my portfolio. The recent weakness has brought some opportunities my way and I decided to take advantage of one of them.
This company is a diversified industrial-conglomerate with exposure to commercial and military aerospace. Its portfolio includes Sikorsky helicopters, Pratt & Whitney jets, Otis elevators and Carrier air conditioners.
United Technologies is a Dividend Contender, having raised their dividend for 20 consecutive years. They boast a 2.2% yield and a 5-year CAGR of 10.3% and a low EPS payout of 35% leaving plenty of room for growth.
S&P Capital IQ gives UTX 4/5 stars with a 3-year EPS CAGR of 11%.
A look at past EPS and future projections from the lastest quarterly slide shows a pretty steady increase except for 2009 which is expected.
So I decided to purchase 40 shares of UTX at $99/share. These 40 shares will provide $94.40 in annual income.
What are you buying?