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Can GE Continue Its Strong Capital Returns to Shareholders?
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Key Takeaways
GE Aerospace repurchased $2.2 billion in shares and paid $381 million in dividends in Q1 2026.
GE raised its dividend 30.6% and expects $8.0-$8.4 billion in free cash flow for 2026.
GE's $11 billion cash position supports its shareholder-friendly policies and capital returns.
GE Aerospace (GE - Free Report) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In first-quarter 2026, it bought back shares for $2.2 billion and paid dividends of $381 million, up 26.2% year over year, to its shareholders. In addition, in 2025, it rewarded its shareholders with a dividend payment of $1.45 billion and repurchased shares for $7.6 billion. After the first quarter of 2026, share repurchases are made under a new $20 billion authorization approved in December 2025.
GE Aerospace raised its dividend by 30.6% to 36 cents per share in February 2026. It expects to generate a free cash flow of $8.0-$8.4 billion in 2026. Also, the company earlier announced its plan to boost total shareholder returns by 20% to approximately $24 billion from 2024 to 2026, through a mix of dividends and share repurchases.
The company’s strong liquidity also supports its shareholder-friendly policies. Exiting the first quarter, GE’s cash, cash equivalents and restricted cash were $11 billion, much higher than the short-term borrowings of $2.1 billion. This implies that the company has sufficient cash to meet its short-term debt obligations.
Do GE’s Peers Focus on Returning Capital to Shareholders?
Honeywell International Inc. (HON - Free Report) paid out dividends worth $781 million and repurchased shares worth $1 billion in first-quarter 2026. In September 2025, Honeywell hiked its quarterly dividend by approximately 5% to $1.19 per share (annually: $4.76). This marks Honeywell’s 16th consecutive dividend hike since 2010.
Howmet Aerospace (HWM - Free Report) remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. In the first three months of 2026, Howmet paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, Howmet hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 12.1% in the past six months against the industry’s decline of 8%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 44.14X, above the industry’s average of 33.01X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.
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Image: Bigstock
Can GE Continue Its Strong Capital Returns to Shareholders?
Key Takeaways
GE Aerospace (GE - Free Report) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In first-quarter 2026, it bought back shares for $2.2 billion and paid dividends of $381 million, up 26.2% year over year, to its shareholders. In addition, in 2025, it rewarded its shareholders with a dividend payment of $1.45 billion and repurchased shares for $7.6 billion. After the first quarter of 2026, share repurchases are made under a new $20 billion authorization approved in December 2025.
GE Aerospace raised its dividend by 30.6% to 36 cents per share in February 2026. It expects to generate a free cash flow of $8.0-$8.4 billion in 2026. Also, the company earlier announced its plan to boost total shareholder returns by 20% to approximately $24 billion from 2024 to 2026, through a mix of dividends and share repurchases.
The company’s strong liquidity also supports its shareholder-friendly policies. Exiting the first quarter, GE’s cash, cash equivalents and restricted cash were $11 billion, much higher than the short-term borrowings of $2.1 billion. This implies that the company has sufficient cash to meet its short-term debt obligations.
Do GE’s Peers Focus on Returning Capital to Shareholders?
Honeywell International Inc. (HON - Free Report) paid out dividends worth $781 million and repurchased shares worth $1 billion in first-quarter 2026. In September 2025, Honeywell hiked its quarterly dividend by approximately 5% to $1.19 per share (annually: $4.76). This marks Honeywell’s 16th consecutive dividend hike since 2010.
Howmet Aerospace (HWM - Free Report) remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. In the first three months of 2026, Howmet paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, Howmet hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 12.1% in the past six months against the industry’s decline of 8%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 44.14X, above the industry’s average of 33.01X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.