Carrier Global Corp (CARR) will start paying a quarterly dividend of $0.08 per share in 2020. This is the first dividend announced by the company since its separation from United Technologies (now Raytheon Technologies) earlier this year.
The first dividend of 8 cents per share will be payable on July 20, 2020, to shareowners of record at the close of business on June 26, 2020. An annualized dividend rate of $0.32 per share yields 1.4% at a stock price of $22.91.
"This dividend highlights our confidence in the strength of Carrier's position and a dedication to creating value for our shareowners," said Dave Gitlin, President & CEO, Carrier in the press release dated June 10, 2020 announcing this maiden dividend.
The new annual dividend rate of $0.32 per share will bring the total dividend payment by Carrier Global to $277 million. Elevator and escalator manufacturer Otis Worldwide (OTIS), separated from the former United Technologies togeter with Carrier, announced its first ever dividend on May 6, 2020. Otis currently pays approximately $346 million in dividends annually. This means that the combined companies (Otis, Carrier and United Technologies, now Raytheon Technologies) pay less dividends annually together than prior to the spin-offs and merger transaction. Raytheon Technologies (RTN) cut its dividend by 35.4 percent on April 27, bringing the total annual dividend payment to $2.88 billion. The former United Technologies paid $4.5 billion in dividends annually before the merger with Raytheon and the CARR and OTIS separations. This means that the new Raytheon Technologies is theoretically not longer a Dividend Aristocrat (the old United Technologies hiked its dividend for the 26th consecutive year in 2019 and was just recently added to the S&P Dividend Aristocrats Index).
Carrier Global Corporation is a global provider of HVAC, refrigeration, fire, security and building automation technologies. The company's portfolio includes industry-leading brands such as Carrier, Kidde, Edwards, LenelS2 and Automated Logic. Carrier Global operates through three segments: HVAC; Refrigeration; and Fire & Security. The company was separated from Dividend Aristocrat United Technologies (now Raytheon Technologies; RTN) in 2020 together with Otis Worldwide (OTIS). Carrier became publicly listed on March 17, 2020 and has initiated a dividend later that year.