RTX and WM: Strong Dividend Investment Choices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2026
0mins
Source: NASDAQ.COM
- RTX's Market Position: As a leading defense contractor, RTX is poised to benefit from the U.S. military's need to replenish its arsenal in the coming years, with only 40% of its estimated 2026 earnings allocated for dividend payments, currently yielding 1.4%, indicating strong financial health.
- WM's Competitive Advantage: WM operates the largest landfill network in the U.S., and due to its strong regulatory moat, management has raised dividends for 23 consecutive years, with a payout ratio of only 46% of its 2026 earnings estimates, allowing room for future dividend growth.
- Valuation Analysis: RTX shares currently trade at over 27 times 2026 earnings estimates, while WM trades at 28 times, and although both stocks are not cheap, analysts project annualized earnings growth of 10%-12% over the next 3-5 years, suggesting fair valuations.
- Investment Recommendations: While both RTX and WM are solid investment options, analysts have identified 10 other stocks that may offer higher returns, prompting investors to consider these alternatives before making decisions.
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Analyst Views on RTX
Wall Street analysts forecast RTX stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 196.420
Low
168.00
Averages
195.77
High
215.00
Current: 196.420
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RTX Quarterly Earnings Report Could Impact Investors Significantly
- Earnings Report Announcement: RTX Corporation is scheduled to report its quarterly financial results on April 15, 2026, which could significantly impact investors, particularly in the current market environment where performance metrics are crucial.
- Investment Recommendation Analysis: The Motley Fool's analyst team has identified 10 top stocks for investors to consider, notably excluding RTX, which may reflect a cautious market sentiment regarding its future growth potential, prompting investors to reassess its investment value.
- Historical Performance Comparison: The Motley Fool's Stock Advisor service boasts an average return of 1,016% since inception, significantly outperforming the S&P 500's 197%, indicating the potential profitability of its recommended stocks, which investors should take into account.
- Market Competition Dynamics: With intensifying competition in AI technology and the semiconductor industry, RTX's financial performance will be closely monitored, especially regarding its technological dependencies on industry giants like Nvidia and Intel, which could influence its market position and investor confidence.
See More
Investors Eye Upcoming Earnings Reports as Market Catalysts
- Positive Bank Performance: Bank stocks kicked off earnings season last week, with the State Street SPDR S&P Bank ETF (KBE) gaining over 2% and marking its fifth consecutive winning week, indicating strong market leadership and potentially boosting investor confidence.
- Focus on Defense Stocks: Jay Woods highlighted that the three largest components of the iShares U.S. Aerospace & Defense ETF (ITA)—GE, RTX, and Boeing—are set to report earnings, with ITA climbing over 7% in 2026, on track for its sixth consecutive profitable year, showcasing the strength of the defense sector.
- ServiceNow Recovery Potential: ServiceNow shares have tumbled more than 35% in 2026, making it one of the worst performers in the S&P 500, but analysts believe the sell-off is overdone, with an average price target suggesting over 72% upside, making it a stock to watch.
- UnitedHealth Stock Analysis: UnitedHealth's stock has fallen over 29% in the past year, yet it is currently trading above its 200-day moving average; Woods noted that if it holds above $324 per share, it could see upside towards $353.75, while downside risks could see it drop to $300 or $287.
See More
Honeywell Sells Business to Reshape Portfolio Amid Market Uncertainty
- Honeywell Business Sale: Honeywell sells its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash, a strategic move to divest cyclical, slower-growing, lower-margin operations, thereby enhancing the overall quality of its portfolio.
- Market Reaction Stable: Despite a 5% rise in oil prices due to uncertainty over commercial shipping traffic in the Strait of Hormuz, the market's decline was less severe than feared, as Treasury yields remained relatively unchanged, indicating a stable investor sentiment.
- Eli Lilly Acquisition Moves: Eli Lilly acquires clinical-stage biotech firm Kelonia Therapeutics for $3.25 billion in cash, aiming to bolster its cancer treatment pipeline, with the deal potentially worth up to $7 billion, showcasing the company's aggressive expansion strategy in oncology.
- Active IPO Market: In spite of uncertainties from the Iran conflict, Jersey Mike's confidentially files for an IPO with a valuation of approximately $8 billion, reflecting ongoing interest in new public offerings and further driving growth in investment banking activities.
See More
Raytheon Delivers Next Generation Jammer Pods to Royal Australian Air Force
- Early Delivery: Raytheon has delivered its first Next Generation Jammer pods to the Royal Australian Air Force ahead of schedule in September 2025 under a joint development and production program with Australia and the U.S. Navy, indicating strong international demand for advanced electronic warfare systems.
- Enhanced Operational Capability: The jammer pods are designed to improve the survivability and mission effectiveness of military aircraft by helping crews operate with reduced detection risk, thereby reinforcing Raytheon's market position in the defense procurement sector.
- Ongoing Support: In addition to the deliveries, Raytheon is providing deployment and maintenance support in Australia, ensuring the long-term operational effectiveness of the systems, which enhances customer trust and promotes future business growth.
- International Collaboration: This program highlights the increasing defense spending by U.S. allies, with Raytheon's close collaboration with the U.S. Navy and Royal Australian Air Force further driving interoperability with American platforms and signaling potential for more international contract opportunities.
See More
RTX Q1 Earnings Outlook Strong Amid Rising Defense Demand
- Optimistic Earnings Forecast: RTX is expected to report Q1 EPS of $1.52, reflecting a 3.4% increase, with revenue anticipated to rise nearly 6% to $21.47 billion, indicating robust demand in the defense and aerospace sectors.
- Rising Market Demand: Escalating tensions between the U.S. and Iran have led to increased demand for missiles, radar systems, and interceptors, positioning RTX favorably as a prime contractor for the Pentagon.
- Increased Contract Signings: RTX has recently signed contracts to supply Patriot interceptors to Ukraine and the Netherlands, which not only strengthens its market position but also has the potential to drive future revenue growth.
- Enhanced Investor Confidence: RBC analysts believe that RTX's backlog growth in upcoming quarters will bolster investor confidence in revenues for 2026-2027, despite the current administration's focus on reducing dividends and stock buybacks.
See More
Impact of Iran War on RTX Stock Price
- Market Reaction Analysis: Last week, despite a perceived easing of tensions in the Middle East, RTX's stock fell by 2.55%, indicating complex market sentiments towards defense stocks, as investors may believe RTX needs the war to continue for its stock price to rise.
- Surge in Orders: Due to the increased demand for missiles driven by the war, RTX has secured government orders to double its annual production of Tomahawk missiles from 500 to 1000 units, highlighting the company's critical role in national defense.
- Production Capacity Expansion: RTX has committed to quadrupling production rates in some cases to meet the U.S. government's demand for air-to-air and interceptor missiles, underscoring the strategic importance of the company in defense rearmament efforts.
- Manufacturing Revival: With production facilities located in Alabama, Arizona, and Massachusetts, RTX reflects the U.S. government's focus on revitalizing domestic manufacturing, which could yield long-term economic benefits for the company.
See More
RTX Quarterly Earnings Report Could Impact Investors Significantly
- Earnings Report Announcement: RTX Corporation is scheduled to report its quarterly financial results on April 15, 2026, which could significantly impact investors, particularly in the current market environment where performance metrics are crucial.
- Investment Recommendation Analysis: The Motley Fool's analyst team has identified 10 top stocks for investors to consider, notably excluding RTX, which may reflect a cautious market sentiment regarding its future growth potential, prompting investors to reassess its investment value.
- Historical Performance Comparison: The Motley Fool's Stock Advisor service boasts an average return of 1,016% since inception, significantly outperforming the S&P 500's 197%, indicating the potential profitability of its recommended stocks, which investors should take into account.
- Market Competition Dynamics: With intensifying competition in AI technology and the semiconductor industry, RTX's financial performance will be closely monitored, especially regarding its technological dependencies on industry giants like Nvidia and Intel, which could influence its market position and investor confidence.
See More
Investors Eye Upcoming Earnings Reports as Market Catalysts
- Positive Bank Performance: Bank stocks kicked off earnings season last week, with the State Street SPDR S&P Bank ETF (KBE) gaining over 2% and marking its fifth consecutive winning week, indicating strong market leadership and potentially boosting investor confidence.
- Focus on Defense Stocks: Jay Woods highlighted that the three largest components of the iShares U.S. Aerospace & Defense ETF (ITA)—GE, RTX, and Boeing—are set to report earnings, with ITA climbing over 7% in 2026, on track for its sixth consecutive profitable year, showcasing the strength of the defense sector.
- ServiceNow Recovery Potential: ServiceNow shares have tumbled more than 35% in 2026, making it one of the worst performers in the S&P 500, but analysts believe the sell-off is overdone, with an average price target suggesting over 72% upside, making it a stock to watch.
- UnitedHealth Stock Analysis: UnitedHealth's stock has fallen over 29% in the past year, yet it is currently trading above its 200-day moving average; Woods noted that if it holds above $324 per share, it could see upside towards $353.75, while downside risks could see it drop to $300 or $287.
See More
Honeywell Sells Business to Reshape Portfolio Amid Market Uncertainty
- Honeywell Business Sale: Honeywell sells its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash, a strategic move to divest cyclical, slower-growing, lower-margin operations, thereby enhancing the overall quality of its portfolio.
- Market Reaction Stable: Despite a 5% rise in oil prices due to uncertainty over commercial shipping traffic in the Strait of Hormuz, the market's decline was less severe than feared, as Treasury yields remained relatively unchanged, indicating a stable investor sentiment.
- Eli Lilly Acquisition Moves: Eli Lilly acquires clinical-stage biotech firm Kelonia Therapeutics for $3.25 billion in cash, aiming to bolster its cancer treatment pipeline, with the deal potentially worth up to $7 billion, showcasing the company's aggressive expansion strategy in oncology.
- Active IPO Market: In spite of uncertainties from the Iran conflict, Jersey Mike's confidentially files for an IPO with a valuation of approximately $8 billion, reflecting ongoing interest in new public offerings and further driving growth in investment banking activities.
See More
Raytheon Delivers Next Generation Jammer Pods to Royal Australian Air Force
- Early Delivery: Raytheon has delivered its first Next Generation Jammer pods to the Royal Australian Air Force ahead of schedule in September 2025 under a joint development and production program with Australia and the U.S. Navy, indicating strong international demand for advanced electronic warfare systems.
- Enhanced Operational Capability: The jammer pods are designed to improve the survivability and mission effectiveness of military aircraft by helping crews operate with reduced detection risk, thereby reinforcing Raytheon's market position in the defense procurement sector.
- Ongoing Support: In addition to the deliveries, Raytheon is providing deployment and maintenance support in Australia, ensuring the long-term operational effectiveness of the systems, which enhances customer trust and promotes future business growth.
- International Collaboration: This program highlights the increasing defense spending by U.S. allies, with Raytheon's close collaboration with the U.S. Navy and Royal Australian Air Force further driving interoperability with American platforms and signaling potential for more international contract opportunities.
See More
RTX Q1 Earnings Outlook Strong Amid Rising Defense Demand
- Optimistic Earnings Forecast: RTX is expected to report Q1 EPS of $1.52, reflecting a 3.4% increase, with revenue anticipated to rise nearly 6% to $21.47 billion, indicating robust demand in the defense and aerospace sectors.
- Rising Market Demand: Escalating tensions between the U.S. and Iran have led to increased demand for missiles, radar systems, and interceptors, positioning RTX favorably as a prime contractor for the Pentagon.
- Increased Contract Signings: RTX has recently signed contracts to supply Patriot interceptors to Ukraine and the Netherlands, which not only strengthens its market position but also has the potential to drive future revenue growth.
- Enhanced Investor Confidence: RBC analysts believe that RTX's backlog growth in upcoming quarters will bolster investor confidence in revenues for 2026-2027, despite the current administration's focus on reducing dividends and stock buybacks.
See More
Impact of Iran War on RTX Stock Price
- Market Reaction Analysis: Last week, despite a perceived easing of tensions in the Middle East, RTX's stock fell by 2.55%, indicating complex market sentiments towards defense stocks, as investors may believe RTX needs the war to continue for its stock price to rise.
- Surge in Orders: Due to the increased demand for missiles driven by the war, RTX has secured government orders to double its annual production of Tomahawk missiles from 500 to 1000 units, highlighting the company's critical role in national defense.
- Production Capacity Expansion: RTX has committed to quadrupling production rates in some cases to meet the U.S. government's demand for air-to-air and interceptor missiles, underscoring the strategic importance of the company in defense rearmament efforts.
- Manufacturing Revival: With production facilities located in Alabama, Arizona, and Massachusetts, RTX reflects the U.S. government's focus on revitalizing domestic manufacturing, which could yield long-term economic benefits for the company.
See More
