This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Dividend Stocks That Want to Pay You More Money

Stocks in this article: AAPL AXP RTN UDR FULT BMR

Raytheon

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Defense contractor Raytheon (RTN), one of the top-yielding aerospace and defense stocks, develops and sells everything from missile systems to technical services to the U.S. government -- a business that generates almost 90% of the firm's annual sales. The balance comes from consulting and sales to smaller governments.

Like most of its peers, Raytheon has been plagued by the risk that Uncle Sam will look to trim his massive budget shortfalls by taking cash from the defense budget, a move that would be detrimental to defense contractors' revenues. At this point, however, those risks remain unsupported by Congressional action. With the U.S. military likely to remain actively engaged in conflict for the foreseeable future and many of Raytheon's offerings (like the Patriot missile system) consumable, the firm shouldn't face the revenue drop-off that some investors are envisioning.

Meanwhile, management is looking for ways to diversify revenues away from the defense department. One of the most successful has been international sales to allies, which have seen double-digit growth in recent years.

On Wednesday, management announced a 16.28% dividend increase, bringing Raytheon's payout to 50 cents per share. That eighth consecutive annual dividend hike puts RTN's yield at 3.3%, making the firm a solid option for a core income holding in the defense sector.

Raytheon shows up on a list of JPMorgan's 24 Stocks That Are More Attractive Than Apple.

4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs