
When it comes to industry-specific performance, undoubtedly one of the most impressive showings in 2025 has come from aerospace and defense stocks. The SPDR S&P Aerospace & Defense ETF (NYSEARCA: XAR), a diversified barometer for the industry, has provided a total return of nearly 31% year to date. That far surpasses the 10% total return of the S&P 500 Index. Strong performance often leads to key events that many investors covet: dividend increases.
Below, we’ll detail three aerospace and defense stocks posting solid returns in 2025 and recently announced huge dividend boosts. All three have lifted their dividends by 20% or more, helping to significantly juice the income portion of their return profiles.