In a shareholder-friendly move, GE Aerospace GE recently raised its quarterly dividend by 28.6% to 36 cents per share (annually: $1.44). The new dividend will be paid out on April 25, 2025, to shareholders of record as of March 10.

The latest dividend hike underscores GE Aerospace’s sound financial health as it utilizes free cash flow to enhance shareholders’ returns.

In 2024, GE rewarded shareholders with $1 billion in dividends and $5.4 billion in share repurchases. In 2023, the company bought back 10.6 million shares for $1.1 billion under a $3 billion buyback program, which was approved in March 2022. It’s worth noting that in 2024, GE generated an adjusted free cash flow of $6.1 billion. It expects a free cash flow in the range of $6.3 -$6.8 billion for 2025.

Apart from repurchasing shares and paying out dividends, GE Aerospace is making investments to boost growth. The company plans to invest more than $1 billion in its global MRO facilities over the next five years. This investment includes the acquisition of a dedicated LEAP test cell, which will lessen a significant constraint in its shop visit capacity. In 2024, GE Aerospace increased its LEAP aftermarket capacity by 40%. These investments will enhance operational capabilities, introduce new technologies to reduce turnaround times and costs, and improve service offerings for both commercial and defense customers. 

Also, the company has secured a robust pipeline of MRO contracts with customers such as Airbus, El Al Israeli Airlines, Royal Jordanian, flydubai and China Airlines. By the end of the fourth quarter, its internal LEAP shop visits had increased more than 20% year over year, reflecting its continued expansion to support aftermarket growth.

GE’s Zacks Rank & Price Performance

GE currently carries a Zacks Rank #2 (Buy). In the past year, the company’s shares have gained 77.1% compared with the industry’s 52.3% growth.

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GE Aerospace is gaining from strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. and international defense budgets, geopolitical tensions, positive airline and airframer dynamics and robust demand for commercial air travel augur well for the company.

Other Stocks to Consider

Other top-ranked companies are discussed below.

Allegiant Travel Company ALGT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegiant delivered a trailing four-quarter average earnings surprise of 31.3%. In the past 60 days, the Zacks Consensus Estimate for ALGT’s 2025 earnings has increased 33.4%.

SkyWest, Inc. SKYW presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 16.7%.

In the past 60 days, the Zacks Consensus Estimate for SKYW’s 2025 earnings has increased 7.9%.

American Airlines Group Inc. AAL currently carries a Zacks Rank of 2. AAL delivered a trailing four-quarter average earnings surprise of 37.1%.

In the past 60 days, the consensus estimate for American Airlines’ fiscal 2025 earnings has increased 10.7%.

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GE Aerospace (GE) : Free Stock Analysis Report

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