Thursday, 3 October 2013

United Technologies: The Future Looks Divided

United Technologies Corporation (UTC) (Ticker: UTX) is an industrial conglomerate with operations spread across military technology, escalator and elevator manufacturing, climate control, in addition to security services.

UTC has been providing investors with steady returns for more than 75 years, and the company is considered a “Dividend Achiever” for consistently raising dividends for over a decade. UTC has in fact been raising its annual dividends over the last 17 years. We will look at the company’s ability to sustain its dividends as it faces uncertainties in the near future.

Even though the company is well diversified across multiple industries, UTC’s many segments are unsure about their future. Its trademark OTIS elevator brand and its Climate, Control and Fire segment currently have a large exposure to China as well as other emerging markets. A slowdown in those segments could considerably hurt its segment revenues. Read more: United Technologies Corporation (UTC) (Ticker: UTX)



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