RTX Corporation announced a quarterly cash dividend of $0.68 per share, scheduled for payment on March 19 to shareholders of record as of February 20. The aerospace and defense giant's stock closed Friday's session at $198.66, marking a 1.4% gain, with approximately 4.35 million shares traded.
Regulatory Risk Looms for Defense Sector
Investors are closely watching for a forthcoming Pentagon compilation identifying contractors deemed underperforming. This list, which could be released as early as next week, stems from an executive order issued by former President Donald Trump on January 7. The order empowers the government to limit dividend distributions and share repurchases for companies that fail to meet specific performance and delivery benchmarks on defense contracts.
In its recent annual 10-K filing, RTX explicitly cited this executive order as a material market risk. The company warned that if federal authorities determine it has not adequately prioritized government contracts, it could face enforcement actions restricting its capital return programs. RTX has paid annual dividends consistently since 1936.
Market and Analyst Perspectives
The policy has drawn criticism from some investment advisors. David Sowerby of Ancora Advisors described the measure as "micromanaging of capital allocation," while Charles Lieberman of Advisors Capital Management noted that cash flow is not a limiting factor for these firms. On a late-January earnings call, RTX CEO Christopher Calio sought to reassure stakeholders, stating the company "remains committed to the dividend."
According to sources, companies placed on the Pentagon's list would have a 15-day window to submit board-approved corrective plans. Failure to satisfy officials could lead to contract termination procedures. The scope of the order, including whether it applies to subcontractors, remains unclear.
As markets opened for the week, traders were monitoring for updates on the list and any remediation steps. The focus also turns to the February 20 record date for RTX's upcoming dividend. The stock's 52-week range is $112.27 to $206.48, with the recent price implying a dividend yield near 1.37%.
