Howmet Aerospace (HWM) Announces Dividend Increase and Preferred Dividend for Shareholders

Howmet Aerospace (HWM) announced on July 29, 2025, a preferred dividend declaration of 94 cents and an increase in the common stock dividend to 12 cents, which are key developments in the recent quarter. Over the last quarter, the company's share price increased by 37%, a substantial move potentially bolstered by strong first-quarter earnings and the completion of notable share buybacks. While these moves add positive weight to the price performance, index removals from Russell indices would have contrarily impacted it. The market dynamics, with the Dow, S&P 500, and Nasdaq exhibiting positive trends, likely supported Howmet's robust share performance during this period.

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The recent dividend declaration and increase in share buybacks by Howmet Aerospace highlight positive shifts in shareholder value enhancement strategies. These actions, coupled with a 37% short-term share price climb, align with the company's narrative of fostering operational efficiencies and strengthening its revenue growth prospects through expansions in Japan and Europe. Over the last five years, Howmet's total shareholder return exceeded 1175%, showcasing significant long-term growth. In the past year, Howmet's share performance surpassed the US Aerospace & Defense industry, which returned 35.9%, reflecting its superior short-term momentum.

The preferred dividend declaration and the boost in the common stock dividend potentially support increased revenue and earnings expectations. With analysts anticipating revenue growth and rising profit margins over the next three years, the recent news could further affirm these optimistic forecasts. Despite a current share price of US$189.17 that slightly surpasses the consensus price target of US$188.40, the market perceives Howmet's valuation as closely aligned with its expected performance trajectory. While the share price trades above analyst expectations, the discount to intrinsic value suggests that further evaluation of Howmet's strategic initiatives and market conditions is advisable.

Examine Howmet Aerospace's earnings growth report to understand how analysts expect it to perform.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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