Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTEbube JonesWed, August 5, 2026 at 1:30 AM GMT+2 5 min readDividends stamp by Olivier Le Moal via iStockThe aerospace and defense sector has turned into one of the market's steadier income plays this year, with the S&P Aerospace & Defense Select Industry Index ($SIAD) up 27% over the past year. That rally has gone hand in hand with a wave of dividend hikes across the group as companies lean on record backlogs and strong free cash flow to return more cash to shareholders, even with sharp stock swings along the way. The U.S. aerospace and defense market is also in a strong growth phase, valued at $463.06 billion in 2026 and expected to reach $610.15 billion by 2031. That marks a compound annual growth rate (CAGR) of 5.67%.More News from BarchartDear Cisco Stock Fans, Earnings Are Just Around the CornerMarkets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.Howmet Aerospace (HWM) has been one of the clearest winners amid that backdrop, and the company's board just gave investors another reason to pay attention. On July 27, Howmet declared a quarterly common stock dividend of $0.14 per share, payable on Aug. 25, 2026, to holders of record as of Aug. 7, 2026. The dividend hike represents a 16.7% increase from the prior $0.12 quarterly payout. Is Howmet's latest dividend hike a sign that the best of its growth story remains ahead? Let's take a closer look.Howmet Aerospace makes parts for aircraft and engines — mainly fasteners, turbine parts, and structural components for the aerospace and defense industry.HWM stock has been moving higher this year. Shares of the company are up 55% over the past 52 weeks and up more than 39% so far this year.www.barchart.comThat kind of run has pushed the valuation up. HWM stock currently trades at a forward price-to-earnings (P/E) ratio of 54.9 times, which is well above the sector average.Even so, Howmet has kept rewarding shareholders. Most recently, the company raised its quarterly dividend to $0.14, payable on Aug. 25 to shareholders of record on Aug. 7. That is a nearly 17% jump from the prior payout of $0.12. The payout still looks safe as well, with a forward payout ratio of just 12.06%, a five-year streak of dividend increases, and room left to keep investing in the business. The yield of 0.17% is below the industrials average, but the bigger appeal here is dividend growth.The latest results back that up. In the first quarter of 2026, revenue rose 19% year-over-year (YOY) to $2.31 billion, adjusted EPS climbed 42% to $1.22, and operating income jumped 52% to $753 million. Operating margin improved to 32.6% from 25.4%, while adjusted EBITDA grew 32% to $740 million with a 32% margin. That strong showing led the company to raise its full-year guidance to revenue of $9.65 billion and adjusted EPS of $4.94.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info