Raytheon [RTN] on Wednesday said its board has voted to increase the company’s annual dividend by 10 percent given its strong financial footing.
The annual dividend will increase by 20 cents to $2.42 per share payable on May 1. The increase equates to a quarterly dividend of 65 cents per share.
“Based on Raytheon’s strong financial position and outlook, we have raised our annual dividend for the 10th consecutive year,” William Swanson, the company’s chairman and CEO, said in a statement. “The increase reflects our continued confidence in the company’s performance and our balanced capital deployment strategy.”
Raytheon is expecting a strong increase in its per share earnings this year due largely to a benefit from pension returns despite a modest decline in sales. Earnings could rise even higher than expected if Congress approves an extension to the federal research and development tax credit.