Benchmark has recently elevated RTX Corporation (NYSE: RTX) from a ‘Hold’ to a ‘Buy’ rating, setting a new price target of \$140. This upgrade reflects rising confidence in RTX’s positioning within the global defense sector, fueled by high-value international contracts and a resilient dividend foundation.
RTX’s Raytheon division secured a \$1 billion counter-drone defense deal with Qatar, underscoring the company’s expanding footprint in next-gen defense solutions. Additionally, its significant involvement in a \$142 billion arms agreement with Saudi Arabia highlights its strength in missile systems and aerospace technologies.
The U.S. administration’s proposed \$1 trillion defense budget for 2026—a 13% increase from the previous year—further enhances the outlook for contractors like RTX. Notably, 60% of RTX’s revenue stems from non-U.S. government clients, providing stability and global diversification.
đź’° Dividend Fundamentals
RTX offers a dividend yield near 1.93%, backed by a 73% payout ratio, reflecting earnings strength and sustainability. Over the past five years, the company has maintained a dividend growth rate of 6.15%, reinforcing its shareholder-friendly approach. The next dividend of \$0.68 per share is set for June 12, 2025, with an ex-dividend date of May 23, 2025.
With global defense momentum, financial strength, and a reliable income stream, RTX stands out as a compelling choice for long-term investors.