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3 Reasons to Hold On to United Technologies Stock

By Chuck Saletta – Dec 23, 2013 at 9:00AM

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United Technologies has a reasonable valuation, a healthy balance sheet, and a well-covered and growing dividend.

United Technologies (RTX 1.52%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons why he's holding on to United Technologies' stock despite the company's modest gain since he bought it last year.

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United Technologies' dividend was key to its selection for the iPIG portfolio. A well-covered and rising dividend, reinvested over time, can help your money compound faster and could ultimately make you rich. It's as simple as that.

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In summary:

  • United Technologies' market price is close enough to Chuck's fair-value estimate to continue holding.
  • United Technologies' balance sheet is solid, with a 0.7 debt-to-equity ratio.
  • United Technologies' dividend is well-covered and has room to increase as the company grows.

To follow the IPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the IPIG portfolio, simply click here.

Chuck Saletta owns shares of United Technologies. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Raytheon Technologies Stock Quote
Raytheon Technologies
RTX
$101.01 (1.52%) $1.51

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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