Can GE Continue Its Strong Capital Returns to Shareholders?

GE Aerospace GE 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 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 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 EstimatesShares of GE Aerospace have gained 12.1% in the past six months against the industry’s decline of 8%.Image Source: Zacks Investment ResearchFrom 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 ResearchThe Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.Image Source: Zacks Investment ResearchThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks