Core Viewpoint - Howmet Aerospace Inc. is positioned to benefit from increasing geopolitical spending in the defense and aerospace sectors, with a strong focus on shareholder returns through dividends and growth potential in the industry [1][2][3]. Group 1: Dividend and Shareholder Value - The board of Howmet Aerospace approved a quarterly dividend of $0.12 per share, to be paid on February 25, 2026, to shareholders of record as of February 6, 2026 [1][2]. - The company has a solid track record of returning value to shareholders, having paid dividends for five consecutive years, and has achieved a 50% dividend growth over the past 12 months [2]. Group 2: Growth Potential and Market Position - Jefferies has identified Howmet Aerospace as a key player in the aerospace and defense sector, expecting the company to benefit from commercial production increases and defense spending priorities [3][4]. - The firm projects that Howmet will sustain high single-digit topline growth through 2028, with EBITDA growth in the mid-teens, and has set a price target of $245 for the stock [4]. Group 3: Company Overview - Howmet Aerospace manufactures advanced engineered components for aerospace, defense, and commercial transportation industries, specializing in jet-engine parts, aerospace fasteners, titanium structures, and forged aluminum wheels for heavy trucks [5].

Core Insights - Numerous companies are expected to increase their dividends in the upcoming quarterly earnings season, with many of these increases being minimal to satisfy shareholders, while larger increases are being sought after [2][3] Dividend Growth Companies - Companies with the potential for significant dividend increases, specifically those capable of raising distributions by at least 39%, are highlighted as attractive investment opportunities [3] - Lockheed Martin (LMT) serves as an example of a company that has consistently aligned its stock performance with its dividend growth, resulting in a yield on cost exceeding 18% for long-term holders [3][4] Primerica (PRI) - Projected dividend yield of 1.6% with a 39% increase expected in 2025, following a trend of doubling its payout over the past four years [5][6] - The company has shown steady revenue growth for over a decade, with earnings per share (EPS) expected to rise by low double digits in 2025, despite pressures from higher living costs [7] - Anticipation surrounds the upcoming dividend hike announcement in early February, with significant stock buyback programs also in place [8] Yum China Holdings (YUMC) - Projected dividend yield of 2.0% with a 50% increase expected in 2025, as the company continues to expand aggressively in the Chinese market [9][10] - Yum China plans to return $3 billion to shareholders between 2025 and 2026, with a notable increase in dividends from 10 cents per share in 2017 to 24 cents per share in 2025 [11][12] Comfort Systems (FIX) - Projected dividend yield of 0.2% with a 60% increase expected in 2025, reflecting a significant growth in dividends of approximately 471% since 2020 [13][15] - The company is well-positioned to benefit from growth in the technology sector, particularly in artificial intelligence, which drives demand for its services [14] Penske Automotive Group (PAG) - Projected dividend yield of 3.4% with a 40.2% increase expected in 2025, maintaining a history of quarterly dividend hikes for over a decade [16][19] - The company operates a diverse range of dealerships and has a significant presence in commercial vehicle retail, although net income has been declining recently [18][21] Howmet Aerospace (HWM) - Projected dividend yield of 0.2% with a 100% increase expected in 2025, following a substantial growth in dividends over the past five years [21][22] - The company is focused on advanced engineered products for aerospace and transportation, with a recent acquisition expected to drive revenue growth [23][24]