This article looks at the 10 Best Aerospace Dividend Stocks to Buy.
The Gabelli Commercial Aerospace & Defense ETF (GCAD) has gained 17% year-to-date as of the close on March 9, comfortably outpacing the S&P 500 Index, which has declined by 1% during the period.
While talking to CNBC on March 2, Tony Bancroft, Portfolio Manager at Gabelli Funds, noted the ongoing Middle East conflict, which is sending aerospace and defense stocks up. He mentioned that more than 100 Tomahawk missiles were launched on Iran on the first night, seeing which he anticipates increased production and spending in the industry ahead.
On the commercial end, while the conflict continues to disrupt flights, several airlines are now gradually beginning to resume operations as airspace opens. The overall outlook for the sector offers promise amid rising demand for international travel.
Deloitte, in its 2026 Aerospace and Defense Industry Outlook, said that it anticipates continued growth in commercial aerospace, considering the steady demand for travel and cargo services, improved fleet utilization, and airlines expanding their fleet size. Moreover, high production backlogs are also prompting operators to increase investments in maintaining their aircraft.
With that said, let’s now shift focus to some of the best aerospace dividend stocks to buy.
Methodology
For this article, we gathered a pool of aerospace stocks that have been paying dividends for at least 10 consecutive years, as of March 9, 2026. We then shortlisted the top 10 companies that had the highest number of hedge fund investors having a stake in them, based on Insider Monkey’s database of prominent hedge funds as of Q4 2025. Finally, we ranked them in ascending order based on the number of hedge funds holding positions. Where two or more stocks are tied on hedge fund sentiment, we used market cap as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Aerospace Dividend Stocks to Buy:
10. VSE Corporation (NASDAQ:VSEC)
Number of Hedge Fund Holders: 25
VSE Corporation (NASDAQ:VSEC) is among the 10 Best Aerospace Dividend Stocks to Buy. On March 2, Stifel lifted its price target on the stock to $260 from $250, while keeping a Buy rating.
The adjustment followed the company’s Q4 2025 earnings call on February 25, where it reported a 32% year-over-year increase in quarterly revenue to $301.2 million. Adjusted EBITDA registered a 55% gain from last year to total $51.8 million, while adjusted EPS stood at $1.16, up 84% from last year.
Looking at the full year 2025, highlights included VSE Corporation (NASDAQ:VSEC)’s evolution into being a pure-play aviation aftermarket firm, achieving record revenue and earnings for Aviation, which included the milestone of exceeding $1 billion in Aviation revenue for the first time in its history.
On the same day as Stifel’s update, Citigroup analyst John Godyn also lifted the firm’s price target on the stock to $261 from $233 and reiterated a Buy rating.
As of the close of business on March 9, VSE Corporation (NASDAQ:VSEC) is a Strong Buy with an average share price upside potential of 18%.
In other news, on February 25, the company announced that its Board of Directors had approved a quarterly cash dividend of 10 cents per share to all common stockholders as of April 15, with the payment scheduled for April 29.
VSE Corporation (NASDAQ:VSEC) provides aviation distribution and repair services for the commercial and business and general aviation aftermarkets.
9. Textron Inc. (NYSE:TXT)
Number of Hedge Fund Holders: 44
Textron Inc. (NYSE:TXT) is among the 10 Best Aerospace Dividend Stocks to Buy. It has been consistently paying out quarterly dividends for well over three decades, according to records available on the company’s website.
On February 24, the Board of Directors approved a quarterly dividend of $0.02 per common share to all stockholders on record at the close on March 13. The payment is due on April 1. As of the close of business on March 9, the company has a dividend yield of 0.085%.
In other news, Textron Inc. (NYSE:TXT) continues to remain on analysts’ radar. Recent updates include Bernstein analyst Douglas Harned on February 19 lifting the price target on the stock to $108 from $94, while maintaining a Market Perform rating.
Harned noted the recent slump in share price after the company missed earnings estimates for Q4. He believes the market overreacted and that the stock is now recovering. Moreover, the Bernstein analyst added that while Textron Inc. (NYSE:TXT) missed the EPS consensus, it was able to comfortably surpass Wall Street’s expectations for revenue.
As of the close of business on March 9, the stock sports a Hold rating based on the recommendations of nine analysts. It has an average share price upside potential of 6%.
Textron Inc. (NYSE:TXT) manufactures products for consumers across several industries, through its six business segments: Bell, Textron Aviation, Textron eAviation, Textron Systems, Industrial, and Finance.
