United Technologies Corporation (UTX): This Company’s Future Is up in the Air

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In the current quarter, United Tech. paid 30.98% of their free cash flow in dividends. By comparison, The Boeing Company (NYSE:BA) paid 36.19%, Johnson Controls, Inc. (NYSE:JCI)’ payout ratio was actually 146%, and General Electric Company (NYSE:GE) paid out 90.42%. When you realize that United Tech is growing fast, generating cash flow, and has the lowest payout ratio, there is a lot of potential for investors to benefit as these trends continue.

A Combination That Is Hard to Beat

If you look at United Technologies Corporation (NYSE:UTX) overall, the investment case is pretty hard to contest. The company has the second fastest expected earnings growth of the group. As proof that the company should turn earnings growth into cash flow, the company’s strong operating cash flow growth just proves that management knows how to generate cash to reward shareholders.

When you combine United Technologies Corporation (NYSE:UTX)’ strong potential, good cash flow, and low payout ratio, the stock already looks like a good value. Combining these positive traits with a stock that trades for a P/E of about 15, which is similar to its peers, the stock looks even better. This company’s future is up in the air, and that’s actually a good thing.

Chad Henage owns shares of General Electric Company. The Motley Fool owns shares of General Electric Company.

The article This Company’s Future Is up in the Air originally appeared on Fool.com.

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