Updated 3/7/25
Curtiss-Wright Corporation (NYSE: CW) isn’t a household name in the dividend world, but it’s been quietly rewarding shareholders for years. Originally rooted in the aviation industry, CW has expanded into defense, aerospace, and industrial markets, providing mission-critical technologies that keep it firmly positioned for long-term stability.
For investors focused on dividends, this stock may not be the first choice due to its relatively low yield. However, when you dig deeper, CW presents an interesting mix of financial strength, consistent dividend growth, and a business model built for resilience. While the company doesn’t deliver high immediate income, its disciplined approach to capital allocation and earnings growth makes it worth considering for those looking at total returns over time.
Key Dividend Metrics
📊 Dividend Yield: 0.27%
💰 Annual Dividend: $0.84 per share
📈 5-Year Average Dividend Yield: 0.47%
🔄 Dividend Growth Streak: Consistent, but not aggressive
📉 Payout Ratio: 7.87% (Very low, plenty of room for growth)
📆 Next Dividend Date: April 14, 2025
🚀 Ex-Dividend Date: March 27, 2025
Dividend Overview
At first glance, CW’s dividend yield is on the lower side, hovering around 0.27%. That might make income-focused investors hesitant, but there’s more to the story. The payout ratio is incredibly low at just under 8%, meaning the company has significant room to grow its dividend over time. This makes CW more of a long-term dividend play rather than a high-yield stock.
Unlike companies that stretch their payout ratios to keep dividends high, CW maintains a more cautious approach. The company has a long track record of rewarding shareholders, but in a measured way that ensures financial flexibility. Investors looking for immediate high yields may need to look elsewhere, but those who value dividend safety and gradual increases may find CW appealing.
Dividend Growth and Safety
CW doesn’t have the kind of eye-popping dividend growth that some high-profile dividend stocks boast, but it has been quietly increasing its payouts over time. The company’s commitment to returning cash to shareholders is evident, but it prioritizes financial strength over aggressive dividend hikes.
With a payout ratio under 8%, the dividend is about as safe as it gets. Even in the event of an economic downturn or a temporary earnings dip, CW has more than enough cushion to maintain or even grow its dividend. Additionally, the company generates strong free cash flow, further reinforcing the sustainability of its payouts.
Dividend safety is rarely a concern here, but for investors looking for rapid dividend compounding, CW might not check all the boxes. The company appears to prefer investing in growth opportunities and share buybacks rather than making large dividend increases.
Chart Analysis
Price Action and Trend
Curtiss-Wright (CW) has had a strong uptrend over the past year, but recent price action shows signs of weakness. The stock made a steady climb for most of 2024, with a notable acceleration in the latter half of the year, reaching a peak near 390 before pulling back. Over the past few months, the stock has been in a clear downtrend, slipping below the 50-day moving average and now testing the 200-day moving average.
The price is currently sitting near 313.65, a key level where the 200-day moving average is acting as potential support. If the stock holds above this level, it could stabilize, but a decisive break below would confirm a deeper correction.
Moving Averages
The 50-day moving average, represented by the orange line, is now sloping downward, indicating short-term bearish momentum. This is a notable shift from earlier in the year when the stock consistently traded above both its 50-day and 200-day moving averages.
The 200-day moving average, shown in blue, is still trending upward, which suggests that the longer-term trend remains intact. However, if the stock continues to struggle below the 50-day moving average and fails to hold support at the 200-day, it could signal a change in overall trend direction.
Volume and Market Participation
Trading volume has been fluctuating, with spikes during sell-offs, indicating that there has been some distribution taking place. The increased selling volume during declines suggests that investors have been taking profits or cutting losses rather than stepping in to buy dips aggressively.
For a potential reversal to occur, buyers would need to step in with strong volume to counteract the recent selling pressure. Without that, the stock could continue to drift lower as momentum remains on the downside.
Relative Strength Index (RSI)
The RSI is currently sitting around 71, which is on the higher end of the scale but not yet in extreme overbought territory. Earlier in the rally, RSI hit even higher levels before cooling off. Now, it’s showing signs of stabilization, but not at an oversold level that would indicate a major buying opportunity.
A move lower in RSI would suggest continued weakness, while a bounce off current levels could indicate that selling pressure is beginning to ease. Investors will likely be watching for signs of RSI bottoming out before considering a re-entry.
Earnings Report Summary
Curtiss-Wright wrapped up 2024 on a solid note, delivering steady growth and strong financial results. The company saw higher sales, improved margins, and solid cash flow, all while continuing to return value to shareholders.
Fourth Quarter 2024 Highlights
Revenue came in at $824 million for the quarter, a 5% jump from the same period last year. Business momentum remained strong across key segments, helping drive operating income to $155 million. After adjusting for certain items, that figure rose to $163 million, with an adjusted operating margin of 19.8%.
Earnings per share landed at $3.09 on a reported basis, but after adjustments, EPS climbed to $3.27, a modest 3% increase year over year. The company also generated a hefty $278 million in free cash flow, converting at an impressive 223% rate.
In addition to delivering strong results, Curtiss-Wright continued its focus on shareholder returns. The company repurchased $112 million worth of stock, taking advantage of its healthy cash position. Meanwhile, new orders surged to $939 million for the quarter, up 37%, bringing the book-to-bill ratio to 1.1x—an encouraging sign for future revenue growth.
Full-Year 2024 Performance
Looking at the full year, total sales reached $3.1 billion, marking a 10% increase from 2023. Operating income totaled $529 million, with an overall operating margin of 16.9%. The company continued to execute well across its key markets, balancing steady growth with disciplined financial management.
Overall, it was a strong year for Curtiss-Wright, as the company expanded sales, improved profitability, and generated significant cash flow, all while maintaining a commitment to delivering value to its shareholders.
Financial Health and Stability
One of CW’s biggest strengths is its rock-solid financial position.
The company operates with an impressive operating margin of 20.66% and a profit margin of nearly 13%, showing its ability to efficiently turn revenue into earnings. Strong profitability metrics like these allow the company to reinvest in growth, pay dividends, and buy back shares without stretching its balance sheet.
Total debt stands at $1.23 billion, which might seem like a lot at first glance, but it’s manageable given CW’s earnings power. The company maintains a debt-to-equity ratio of 50.36%, which is reasonable for an industrial firm. With $385 million in cash and over $544 million in annual operating cash flow, CW has plenty of financial flexibility.
Return on equity is also worth noting at 16.95%, which indicates that management is effectively using capital to generate solid returns for shareholders.
From a financial health standpoint, CW checks all the right boxes. It’s not overleveraged, it generates strong cash flow, and it operates with healthy margins. That’s exactly what you want to see from a company paying dividends.
Valuation and Stock Performance
CW has been a strong performer in recent years, outpacing broader market returns. But the question for investors now is whether the stock is still attractively valued or if it’s running a little too hot.
The stock is currently trading at $311.81, sitting within a 52-week range of $236.31 to $393.40. This suggests CW is closer to its highs than its lows, which may give some investors pause.
Looking at valuation metrics, CW has a price-to-earnings (P/E) ratio of 29.73. That’s not outrageous, but it does indicate that investors are willing to pay a premium for the company’s stability and earnings growth. The forward P/E is even higher, suggesting that expectations are elevated.
Another way to look at valuation is the price-to-book ratio, which sits at 4.82. This means the stock isn’t cheap based on book value, but that’s often the case with companies that have strong earnings potential.
For investors considering adding CW to their portfolio, it’s worth keeping an eye on the stock’s movement. While it remains a high-quality business, its current valuation may not offer the most attractive entry point. A pullback could provide a better opportunity.
Risks and Considerations
No stock is without risks, and CW is no exception. Here are a few factors that investors should keep in mind:
- Low Dividend Yield – At just 0.27%, the yield is too low for income-focused investors looking for substantial passive income. This stock is more of a total return play.
- Valuation Risk – The stock is trading near its highs, and if market sentiment shifts or earnings growth slows, CW could see a valuation reset.
- Cyclical Exposure – While CW benefits from steady defense contracts, its industrial segments could be affected by economic slowdowns.
- Dividend Growth Pace – Although the dividend is safe, its growth rate hasn’t been particularly fast. Investors looking for compounding dividend growth may prefer alternatives.
While none of these risks are deal-breakers, they should be weighed when deciding whether CW fits within a dividend-focused portfolio.
Final Thoughts
Curtiss-Wright is a financially strong company with a reliable dividend, but it isn’t an income powerhouse. The yield is low, but the dividend is extremely safe, and there’s plenty of room for future increases. Investors who prioritize dividend safety and total return potential may find CW to be a solid long-term holding.
That said, at current prices, the stock looks a bit expensive. While the business fundamentals remain strong, waiting for a better entry point might be a more prudent approach for those looking to maximize returns.
For now, CW remains a high-quality company with a strong balance sheet, a secure dividend, and steady earnings growth. If management prioritizes higher dividend increases in the future, it could become even more appealing to long-term investors looking for stable, growing income.
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