Howmet Aerospace Raises Quarterly Dividend 16.7% to $0.14

Howmet Aerospace Inc. raised its quarterly dividend 16.7% to $0.14 a share from $0.12, lifting the annualized payout to $0.56. The shares traded ex-dividend on August 7, 2026.

Why the dividend changed

Howmet’s board announced a regular cash dividend but did not give a specific rationale for the increase. The timing followed stronger earnings and cash generation across the aerospace-parts manufacturer’s principal markets. The change was not connected to a stock split, merger or spinoff. Howmet’s dividend declaration set the new rate.

Second-quarter revenue rose 24% from a year earlier to $2.55 billion, while adjusted earnings per share increased 46% to $1.33. Free cash flow rose 39% to $479 million after $104 million of capital spending. Commercial aerospace, defense aerospace and gas turbines drove the expansion, partly offset by weaker commercial-transportation volumes. Howmet’s second-quarter results provide the operating context for the board’s decision.

Management also raised its full-year outlook. Howmet projected 2026 revenue of $10.00 billion to $10.10 billion, adjusted earnings per share of $5.23 to $5.31 and free cash flow of $1.85 billion to $1.95 billion. Chief Executive Officer John Plant said all the company’s major markets were growing, supported by commercial-aircraft backlogs, demand for engine spares, healthy defense markets and unusually strong gas-turbine demand.

The dividend increase came alongside substantial competing uses of cash. Howmet completed its approximately $1.8 billion acquisition of Consolidated Aerospace Manufacturing, or CAM, on April 6, 2026. It also repurchased $800 million of stock through July. Plant said higher capital spending would be needed in 2027 to support organic growth, while continued cash generation was expected to help restore leverage to pre-CAM levels. Those commitments make cash generation and balance-sheet progress central to the dividend’s context.

The company’s second-quarter Form 10-Q offers a similar explanation for the operating improvement. Howmet attributed higher sales to commercial and defense aerospace, gas turbines, engine spares, pricing and acquisitions. The filing also states that future dividends remain subject to board approval.

Dividend track record

The latest increase extends Howmet’s dividend-growth streak to 3 consecutive years. Recent payments show a stepped pattern rather than small annual adjustments. The quarterly rate moved from $0.08 in November 2024 to $0.10 in February 2025, $0.12 in August 2025 and $0.14 in August 2026. That progression increased the payment at several points within the streak.

Annual cash distributions also accelerated after the company established a regular four-payment schedule. The total was $0.02 from one payment in 2020 and $0.04 from two payments in 2021. Four payments totaled $0.10 in 2022, $0.17 in 2023 and $0.26 in 2024. The 2025 total rose 69.2% to $0.44.

The last annual dividend cut occurred in 2019. The subsequent record shows a rebuilding phase followed by repeated increases, but the current growth streak remains relatively short. Howmet’s dividend history confirms the progression of quarterly cash payments.

Is the dividend covered?

The dividend consumes 10% of earnings, leaving a wide earnings cushion after the increase. That low payout ratio means the distribution requires only a limited portion of reported profit, while the remainder can fund acquisitions, capital spending, debt reduction and share repurchases.

SmarterDividends rates the dividend B, with a safety score of 63. The B grade denotes a safe dividend rather than the highest safety tier. The combination of the grade and 10% earnings payout ratio indicates solid current coverage, although future payments still depend on board approval and continued operating performance.

Yield and valuation

At a share price of $231.15, the annual dividend of $0.56 produces a forward yield of 0.24%. That is well below the Industrials sector median forward yield of 1.61%. The increase therefore raises the cash income attached to each share, but HWM remains a low-yielding industrial stock relative to its sector.

SmarterDividends estimates fair value at $163.75 and classifies the shares as overvalued. The estimate is 29% below the $231.15 share price. That valuation assessment concerns the price paid for the company’s earnings and dividend stream, not the present coverage of the payout.

What to watch

The next operating checkpoint is performance against Howmet’s increased 2026 guidance. Free cash flow will be particularly relevant because the company is simultaneously funding the dividend, integrating CAM, repurchasing shares and preparing for greater capital requirements in 2027.

Investors can also monitor commercial-aircraft production, engine-spares demand and gas-turbine orders, the markets management identified as important growth drivers. Other concrete items include progress toward pre-CAM leverage, the pace of share repurchases and the board’s next dividend declaration. The latest recorded ex-dividend date was August 7, 2026; a subsequent board action will establish the terms of the next quarterly payment.