Raytheon Technologies (RTX), formerly United Technologies, will hike its quarterly dividend by 7.4 percent to 51 cents per share in 2021. Last year the merged company started with a $0.475 quarterly dividend, down 35.4 percent from the last quarterly dividend paid by United Technologies prior to the merger with Raytheon. This will mark the first dividend increase ever by the merged company.

The next dividend of 51 cents per share will be payable on June 17, 2021, to shareowners of record at the close of business on May 21, 2021. A new annual dividend rate of $2.04 per share will yield 2.5% at a stock price of $81.

"The increase in our dividend reflects our long-standing commitment to deliver consistent and growing cash returns to shareowners," said Raytheon Technologies chief executive officer Greg Hayes. "The outlook for our company is positive and we remain on track to return $18 to $20 billion to shareowners in the four years following the merger."

Raytheon Technologies Corporation, formerly United Technologies Corporation, is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. It comprises four businesses – Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense. The company was formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses and is headquartered in Waltham, Massachusetts. RTX has paid cash dividends on its common stock every year since 1936.