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Curtiss-Wright (CW) Rewards Shareholders With 6% Dividend Hike

Curtiss-Wright Corporation CW announced that its board of directors approved a 6% increase in its quarterly dividend to 18 cents per share from the dividend of 17 cents paid out in first-quarter 2021. The amount is payable Jul 2, 2021 to the company’s stockholders of record on Jun 18, 2021.

The new dividend yield of the company will be 0.59% compared with its previous yield of 0.54%.

Can This Dividend be Sustained?

Since 2013, Curtiss-Wright has returned more than $1 billion to its shareholders through share repurchases and dividend payouts. After completing its second share buyback program in the fourth quarter of 2020, which raised the full-year buyback to $200 million, the company repurchased shares worth $12 million in first-quarter 2021. Moreover, its adjusted free cash flow improved 34% in the first three months of 2021 year over year.

Curtiss-Wright expects 7-9% revenue growth in 2021, backed by a strong improvement in the Aerospace & Defense and Commercial markets. The company’s profitability is expected to be better through top-line growth and savings generated by restructuring actions. The company is expected to generate free cash flow in the $330-$360 million range during 2021 via its financial discipline. These positive developments indicate the company’s ability to sustain the dividend rate.

Last month, Curtiss-Wright announced that it was awarded a contract by Lockheed Martin Aeronautics, a Lockheed Martin LMT company, to provide its industry-leading rugged commercial-off-the-shelf processor module technology to upgrade the F-22 Raptor. Order wins of this nature continue to act as tailwinds, thus enabling management to carry on with shareholder-friendly moves.

Peer Moves

Stable cash flow enables defense companies to reward shareholders with regular dividend hikes, thereby placing them in investors’ good books. Some such players are listed below-

Raytheon Technologies Corporation RTX hiked its quarterly dividend by more than 7% to 51 cents per share. General Dynamics Corporation GD lifted its annual dividend by 8.2% to $4.76 per share from the prior level of $4.40.

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General Dynamics Corporation (GD): Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
 
CurtissWright Corporation (CW): Free Stock Analysis Report
 
Raytheon Technologies Corporation (RTX): Free Stock Analysis Report
 
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