Otis Worldwide Corporation will start paying a quarterly dividend of $0.20 per share in 2020. The company was separated from United Technologies (UTX) earlier this year following the acquistion of Raytheon by the former UTX now known as Raytheon Technologies (RTX).
The first ever dividend will be payable on June 10, 2020, to shareholders of record at the close of business on May 22, 2020. A new annualized dividend rate of 80 cents per share yields 1.5% at a stock price of $51.90.
"The dividend announced today reflects our confidence in Otis' balance sheet strength, continued strong free cash flow generation and a commitment to drive value for our shareholders," said Judy Marks, President and CEO in the company's press release dated May 6, 2020 announcing this dividend.
On April 27, 2020 Raytheon Technologies announced a new quarterly dividend of 47.5 cents per share.
Otis Worldwide Corp is an elevator and escalator manufacturing, installation and service company. The company operates through two segments: New Equipment and Service. The New Equipment segment designs, manufactures, sells and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. The Service segment performs maintenance and repair services for both its products and those of other manufacturers and provides services to upgrade elevators and escalators. Otis has customers in over 200 countries and territories worldwide. Otis was spun off from United Technologies on April 3, 2020. The company initiated a quarterly dividend in May 2020.