RTX dividend: payment, coverage and yield
RTX pays $0.73 per share each quarter, and its $7,448 million of 2025 free cash flow covered dividends. After stock compensation, real free cash flow was $6,929 million.
How much does RTX pay in dividends?
Dividends grow more slowly than they did recently. The base case uses $3.07 per share in 2027, $3.27 in 2028 and $3.47 in 2029. The current quarterly rate is $0.73, while the company has raised dividends every year from 2021 through 2026. The bear case holds at $2.92 before reaching $3.00, reflecting remediation cash costs. The bull case reaches $3.72 as repairs ease and free cash flow exceeds guidance.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 88,603 | 80,738 | 68,920 | 67,074 | 64,388 |
| EPS, diluted | 4.96 | 3.55 | 2.23 | 3.51 | 2.58 |
| Dividend per share | 2.67 | 2.48 | 2.32 | 2.16 | 2.01 |
Does RTX’s dividend come from its cash?
After $3,119 million of investment, broader free cash flow was $7,448 million. That compares with $3,923 million in 2024. RTX’s own measure was $7,940 million because it excludes intangible-asset spending. The difference, $492 million, is still a real cash outflow.
Stock compensation provides another adjustment. Deducting $519 million produces “real free cash flow” of $6,929 million. This is not an extra current-year cash payment; it recognises that employees received part of the company through shareholder dilution.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 7,448 | 3,923 | 4,717 | 4,393 | 4,700 |
| − Dividends paid | 3,574 | 3,217 | 3,239 | 3,128 | 2,957 |
| − Share buybacks | 50 | 444 | 12,870 | 2,803 | 2,327 |
| = Free cash flow not paid out | 3,587 | 139 | |||
| Paid out, % of free cash flow | 48.7% | 93.3% | 341.5% | 135.0% | 112.4% |
What could change RTX’s dividend?
Starting from June 2026 equity, the base case reaches $71,577 million in October 2027 and $75,777 million in October 2028. It reaches $80,577 million in October 2029. The path reflects earnings growth, modest shareholder payouts and continuing debt-reduction priorities. Reported net income was $6,732 million in 2025 and $4,406 million in the first half of 2026, supporting the direction of travel.
What is RTX’s dividend yield today?
Cash provides the harder test. The U.S. 10-year Treasury yield was 5.24%, while RTX’s regular dividend yield was 1.6%. Investors therefore need future growth and cash generation to justify the price.
| Today (Oct 12, 2026) | |
|---|---|
| Share price | 186.50999 |
| Free cash flow yield (calculated) | 3.0% |
| Real free cash flow yield (calculated) | 2.8% |
| Dividend yield (calculated) | 1.6% |