Steve Cohen knows how to play the long game.

The founder and CEO of Point72 Asset Management spent decades navigating the markets, first at S.A.C. Capital Advisors, which he founded in 1992, before converting operations to the Point72 family office in 2014. 

The firm later opened to outside investors in 2018 and today manages tens of billions in assets across global multi-strategy investments.

Cohen is also widely known outside of finance. He bought the New York Mets in 2020 and serves as the team’s chairman and CEO. 

According to 13F filings, Point72 took a new position in TransDigm Group, buying 252,781 shares valued at roughly $336.2 million. 

That stake represents 0.55% of the firm’s total portfolio and 0.45% of TransDigm’s shares outstanding. The change in shares held was 252,281, essentially a new position built from scratch. 

It’s a bold bet on a company that’s come under pressure lately. Valued at $73 billion by market cap, TDG stock is down 20% from all-time highs. The ongoing pullback has raised the company’s trailing dividend yield to almost 7%.

Steve Cohen is bullish on this dividend stock.

TDG dividend: what income investors should know

Newsday LLC/Getty Images TransDigm takes an unconventional approach to dividends. Rather than paying a quarterly dividend, it periodically issues large special dividends when cash builds up on the balance sheet.

In 2025, it paid shareholders an annual dividend of $90 per share, according to Yahoo! Finance, yielding almost 7%. Its dividend payout was much lower in 2024, at $75 per share, and in 2023, at $35 per share. 

Key dividend metrics for TDG stock:

  • Annual dividend per share: $90 (most recent special dividend)
  • Dividend yield (TTM): Approximately 6.94%, based on the $90 special dividend
  • Dividend frequency: Special/irregular payments — not quarterly
  • Dividend growth 3-year CAGR: 71%
  • Market capitalization: Approximately $71.7 billion
  • 52-week range: $1,183.60 – $1,623.83

It’s worth noting that TDG doesn’t pay a predictable dividend like a utility stock. Investors looking for consistent quarterly income should understand that its “dividend” strategy is tied to cash flow and capital allocation decisions in any given period.

That said, the near-term dividend growth rate is impressive. And for Cohen and Point72, the dividend may be secondary to the bigger picture — a dominant aerospace compounder with pricing power, a war chest for acquisitions, and a stock trading well off its highs.

Point72 bets big on the dividend stock

TransDigm isn’t a household name, but in the aerospace world, it’s a powerhouse.

The Cleveland-based company designs and manufactures highly specialized components used on nearly every commercial and military aircraft flying today. 

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We’re talking about components such as ignition systems, actuators, cockpit security components, cargo loaders, and parachutes. 

About 90% of its products are proprietary, which indicates it’s typically the only supplier of what it manufactures.

That matters enormously for pricing power. When an airline needs a specific latch or sensor, it can’t just shop around.

The company operates through three segments: Power & Control, Airframe, and Non-Aviation.

Its customers include major airframe manufacturers, airlines, third-party maintenance providers, and military procurement agencies worldwide.

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In its fiscal first quarter of 2026, TransDigm reported revenue of $2.28 billion, up 14% year over year. 

Organic growth came in at 7.4%, while EBITDA was $1.2 billion, resulting in a 52.4% margin. 

CEO Mike Lisman noted the company beat its own expectations heading into the year.

Full-year guidance was raised as a result. The company now projects $9.94 billion in revenue — roughly 13% growth — and $5.21 billion in EBITDA, with adjusted EPS of $38.38.

TransDigm: a focus on acquisitions

One thing that may have caught Cohen’s eye is TransDigm’s aggressive M&A strategy.

In the past two months alone, the company signed three deals. 

  • It agreed to acquire Stellant Systems, a designer of high-power electronic components for the aerospace and defense markets, for roughly $960 million. 
  • It also struck a $2.2 billion deal to acquire Jet Parts Engineering and Victor Sierra Aviation, two specialists in proprietary aftermarket parts for commercial aircraft.
  • Together, those three businesses generated about $580 million in combined revenue for calendar year 2025.

After accounting for the deals, management says the company still has nearly $10 billion in M&A firepower remaining.

Defense is also firing on all cylinders. Defense revenues grew approximately 7% in Q1, bookings came in well ahead of expectations, and the backlog continues to build. With global defense spending rising, TransDigm looks well-positioned to benefit.

The bottom line on Point72’s TransDigm position

Point72’s new $336 million position in TransDigm sends a clear signal. At a time when TDG shares have pulled back significantly from peak levels, one of Wall Street‘s most respected investors sees value.

Analysts maintain a “moderate buy” rating on TDG stock, with a mean price target of $1,608, implying roughly 24% upside from recent prices.

For Cohen, this looks like a classic “buy the dip” play in a business with deep competitive moats, strong free cash flow, and a management team that has consistently delivered shareholder returns over decades. 

Whether the timing proves right remains to be seen, but Point72 has made its bet.

Related: Jim Simons’ Renaissance lowers stake by $700M in hot dividend stock