Raytheon (RTN) announced it has raised its dividend 16.3% from $.43 to $.50 per quarter. This marks 8 consecutive years of increases placing RTN in the dividend challengers category of dividend growth stocks. 16.3% is a huge number and by far the best increase my portfolio has seen in 2012.
Raytheon is a defense contractor best known for manufacturing missiles. In addition to missiles/air defense, RTN has a number of other businesses including radar solutions, surveillance systems, biometrics, cyber security, and other specialized electronics. I serve in the US Army and am weary of putting large percentages of my portfolio in defense contractors. I have first hand knowledge that the military is downsizing which is a reflection of ending the Iraq war and winding down Afghanistan. With this in mind I also realize the need for defense contractors will not go away. Our country needs to defend itself, companies like RTN help make us the best. I also like GD and LMT from the industry.