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.
8. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
L3Harris Technologies, Inc. (NYSE:LHX) is among the 10 Best Aerospace Dividend Stocks to Buy. On March 2, the company announced the appointment of Ken Sharp as Senior Vice President and Chief Financial Officer. He will assume charge from March 16.
Sharp brings more than three decades of experience in defense and technology firms, having previously worked in financial leadership positions at Peraton Inc., DXC Technology, and Northrop Grumman.
He will succeed Ken Bedingfield, whose focus will now shift towards heading L3Harris Technologies, Inc. (NYSE:LHX)’s Missile Solutions business and its eventual initial public offering. Moreover, he will also lead efforts to expand solid rocket motor manufacturing to meet America’s urgent defense needs.
The company’s shares gained 2.16% on Friday, following reports that Trump met senior executives of top defense contractors, including L3Harris Technologies, Inc. (NYSE:LHX), where they “agreed to quadruple Production of the ‘Exquisite Class’ Weaponry in that we want to reach, as rapidly as possible, the highest levels of quantity”, according to a social media post by the U.S. president.
The stock has already returned 22% year-to-date as of the close on March 9. It currently sports a Strong Buy rating and has an average share price upside potential of 7%.
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions that connect the air, land, space, sea, and cyber domains for national security.
7. Curtiss-Wright Corporation (NYSE:CW)
Number of Hedge Fund Holders: 59
Curtiss-Wright Corporation (NYSE:CW) is among the 10 Best Aerospace Dividend Stocks to Buy. The company has been consistently paying dividends since 1989, according to information available on its website.
On February 4, the Board of Directors declared a quarterly dividend of $0.24 per share to all stockholders on record as of March 26. The payment is scheduled for April 13. The stock has an annual dividend yield of 0.14% as of the close on March 9.
Curtiss-Wright Corporation (NYSE:CW) continues to remain on analysts’ radar and currently sports a Moderate Buy rating with an upside potential of a mere 1% from Monday’s close.
Over the past month, several firms, including Citigroup, Morgan Stanley, and Deutsche Bank, have lifted the price targets on the stock, following the company’s Q4 earnings call in February in which it reported robust quarterly results and shared a strong guidance for 2026.
In other news, Curtiss-Wright Corporation (NYSE:CW) was selected by Boeing last month to supply mission computer technology for the Air Force’s C-17 fleet. The avionics upgrade contract, which has an estimated lifetime value of over $400 million, is expected to extend the operational life of the fleet and aid in necessary cockpit upgrades.
Curtiss-Wright Corporation (NYSE:CW) provides engineered products, solutions and services for the aerospace and defense markets.
6. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 59
Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Aerospace Dividend Stocks to Buy. On March 3, the company announced that it will act as a mission partner to Mitsubishi Electric by providing an anti-jamming payload for Japan’s Next-Generation Defense Satellite Communication System.
The payload will help in enhancing the capabilities of the satellite through improved resistance to interference and interoperability with allied and partner countries. The new satellite will succeed Japan’s current operational X-band defense communication satellite.
According to Lockheed Martin Corporation (NYSE:LMT)’s press release, the payload will be manufactured at the defense contractor’s facilities in Colorado, while the final assembly, integration, and testing will be performed by Mitsubishi Electric in Japan.
In other news, on Thursday, the company named Mark Kvasnak as Vice President of Investor Relations. He will assume charge from March 16, replacing Maria Ricciardone, who remains Vice President, Treasurer.
The F-35 maker’s shares have surged 34% year-to-date, largely driven by ongoing geopolitical conflicts. However, Wall Street has a cautious outlook on the stock with a Hold rating and a slight average downside of 1% as of the close on March 9.
Lockheed Martin Corporation (NYSE:LMT) is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services.
5. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 62
Northrop Grumman Corporation (NYSE:NOC) is among the 10 Best Aerospace Dividend Stocks to Buy. On March 5, the company announced that it would be supplying its aircraft protection system for Germany’s CH-47 Chinook helicopters.
The Common Infrared Countermeasures (CIRCM) will be installed outside the newly ordered helicopters, acting as a shield to detect and thwart incoming threats through its electro-optical infrared technology. The system jams the threat’s targeting signal by shooting a higher-performance laser at it, causing it to lose lock.
Over 700 CIRCM have so far been deployed on rotary wing aircraft across the world. The expansion of the system to Germany will not only enhance the capabilities of its CH-47 Chinook helicopters but will also help in broadening its presence in Europe.
In other news, last month, Northrop Grumman Corporation (NYSE:NOC) announced that it was fast-tracking the production capacity of the B-21 Raider. The company said that it had invested over $5 billion in manufacturing and digital engineering, which would ensure faster production of the stealth bomber. The first aircraft is scheduled for delivery in 2027.
Northrop Grumman Corporation (NYSE:NOC) is one of the world’s largest defense contractors. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
4. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 66
General Dynamics Corporation (NYSE:GD) is among the 10 Best Aerospace Dividend Stocks to Buy. On March 9, the defense contractor announced that its Board of Directors had approved a quarterly dividend of $1.59 per share on common stock.
The payment is scheduled for May 8 to all stockholders on record as of April 10. The amount marks a 9-cent increase from the last dividend declared in December 2025. The company is a dividend aristocrat due to its consistent dividend growth over the decades. As of the close on March 9, the stock has a dividend yield of 1.66%.
In other news, General Dynamics Corporation (NYSE:GD) continues to remain on analysts’ radar and currently sports a Moderate Buy rating with an annual share price upside potential of 10% from Monday’s close.
Recent updates include BofA reiterating a Buy rating on the stock with a $400 price target on February 23. Earlier in the month, on February 1, Jefferies raised its price target to $385 from $360, while keeping a Hold rating.
Both rating updates followed the company’s Q4 results declared in late January, where it beat estimates for both revenue and earnings. However, its 2026 EPS forecast fell shy of Wall Street’s expectations.
General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.
3. Woodward, Inc. (NASDAQ:WWD)
Number of Hedge Fund Holders: 69
Woodward, Inc. (NASDAQ:WWD) is among the 10 Best Aerospace Dividend Stocks to Buy. On March 9, the company announced it had reached an agreement to acquire Valve Research & Manufacturing Company (VRM), which produces flow control valves for aerospace applications.
The deal is expected to enhance Woodward’s aerospace control portfolio with the inclusion of precision electromagnetic valve solutions, including check valves, solenoid valves, and relief valves. It is also likely to open new growth opportunities for the company in commercial and defense aerospace OEM applications.
According to Woodward, Inc. (NASDAQ:WWD)’s press release, the transaction is scheduled to be completed during the first half of this year. The terms of the agreement include the buyout of all outstanding VRM shares, manufacturing facilities, and real estate.
In other news, Woodward, Inc. (NASDAQ:WWD) continues to remain on analysts’ radar. As of the close of business on March 9, the stock is a Strong Buy with an average share price upside potential of 7%.
Recent updates include Jefferies’ Sheila Kahyaoglu, on February 8, lifting the firm’s price target on the stock to $450 from $385 with a Buy rating. The adjustment followed the company’s strong Q1 2026 results with net sales surging 29% year-over-year, which the analyst believes suggests that the company’s investments were not squeezing margins.
Woodward, Inc. (NASDAQ:WWD) designs, produces, and services energy conversion and control solutions for the aerospace and industrial equipment markets.
2. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 71
Howmet Aerospace Inc. (NYSE:HWM) is among the 10 Best Aerospace Dividend Stocks to Buy. As of the close of business on March 9, the stock is a Strong Buy with an average share price upside potential of 16%.
Recent updates include BofA’s Ronald Epstein, on February 20, lifting the price target on the stock to $300 from $250, while maintaining a Buy rating. The firm noted the surging growth across several end markets and praised the company for its execution, which it believed was driving record margins.
This followed BTIG’s adjustment on February 18 when the firm raised its price target on Howmet Aerospace Inc. (NYSE:HWM) to $275 from $240 and reiterated a Buy rating. The update came after the company reported an earnings beat for the fourth quarter of fiscal 2025.
According to TipRanks, BTIG analyst Andre Madrid told investors in a research note that the company’s capital expenditure reached record levels in 2025, and given the increased aerospace and gas turbine orders, he expects the figure to continue growing this year.
The company posted a revenue of $2.2 billion for the fourth quarter, representing a 15% increase from the prior year, largely driven by a 13% revenue growth in Commercial Aerospace. Adjusted EPS was logged at $1.05, beating estimates of $0.965 and up 42% year-over-year.
Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries.
1. HEICO Corporation (NYSE:HEI)
Number of Hedge Fund Holders: 73
HEICO Corporation (NYSE:HEI) is among the 10 Best Aerospace Dividend Stocks to Buy. As of the close of business on March 9, the stock is a Moderate Buy with an average share price upside potential of 23%.
According to a report by TheFly, Citigroup on February 27 added an ‘upside 90-day catalyst watch’ on the company’s shares. The firm has a Buy rating on the stock with a $400 price target.
Citigroup described the recent 9% slump following the first quarter results late last month as ‘unwarranted’, while adding that it views the current share price as an attractive entry point for investors looking to buy the dip.
While HEICO Corporation (NYSE:HEI) reported a record net income, consolidated margin expansion, and robust growth in both operating income and net sales in Q1, shares fell in response to weakness observed in the company’s Electronic Technologies Group which had a year-over-year decline in both operating income and operating margin.
The company attributed the dip to a decrease in gross profit, which stemmed from declining net sales of space products and a less favorable product mix of defense products.
Overall, net income was posted at $190.2 million, a record and up 13% from the prior year, resulting in earnings of $1.35 per diluted share. Net sales grew 14% year-over-year to $1,178.6 million, while consolidated operating margin improved from 22% to 22.1%.
HEICO Corporation (NYSE:HEI) is a leading manufacturer of jet engines and aircraft component replacement parts.
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