12 Best Stocks to Own for Grandchildren

3. Howmet Aerospace Inc. (NYSE:HWM)

Number of Hedge Fund Holders: 57

Howmet Aerospace Inc. (NYSE:HWM), a leading manufacturer of engineered metal products for aircraft engines, airframes, defense systems, and industrial markets, continues to benefit from strong demand across both commercial and defense aerospace sectors. Major clients include Boeing, Airbus, Lockheed Martin, and GE Aerospace.

In Q2 2025, commercial aerospace revenues rose 8% year-over-year, fueled by sustained air travel demand and increased production of more fuel-efficient aircraft. This segment, which makes up over half of HWM’s business, is also seeing growth from airlines extending the life of older fleets, boosting demand for aftermarket parts.

Defense aerospace posted even stronger results, with revenues up 21% in Q2, driven by engine spare orders for programs such as the F-35 and legacy fighters. With the U.S. government approving a $831.5 billion defense budget for 2026, HWM is well-positioned to secure additional contracts and expand its defense-related revenues, which currently represent 17% of total sales.

Howmet Aerospace Inc. (NYSE:HWM) has also been rewarding shareholders, raising its dividend twice in 2025, most recently by 20% to an annualized $0.48 per share, and repurchasing $300 million in stock during the first half of the year. Its buyback program has been expanded to $2.487 billion, reflecting confidence in long-term growth.

HWM’s stock has surged over 70% year-to-date, backed by strong earnings momentum and growing institutional investor interest.