United Technologies: Attractive Dividend and Peer Outperformance

United Technologies (UTX) is a diversified global provider of high-technology products and services for building systems and aircraft. From an operating perspective, this stalwart blue-chip has weathered the recession better than other well-known peers. Although earnings and market price sagged in 2008, both are recovering quickly as the economy and stock market improves.

When viewed from the perspective of our Fundamentals-at-a-glance earnings and price correlated research tool, United Technologies’ operating excellence versus its peers’ is clearly evident. Figure 1 shows United Technologies’ stock price since 1996 overlaid on their earnings growth. As you can see, stock price tracked earnings very closely over the years. When the price (black line) rose above the earnings line (green line with white triangles) it always returned to the earnings justified price and vice-versa.