We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honeywell's (HON) Board Okays 3.3% Hike in Dividend Rate
Read MoreHide Full Article
Honeywell International Inc. (HON - Free Report) announced rewards for its shareholders in the form of a hike in the annual dividend rate. This hike is its 11th consecutive yearly increase.
It is worth noting here that the company’s shares gained 1.7% yesterday, ending the trading session at $161.49.
We believe that such shareholder-friendly policies of Honeywell reflect a strong cash position and belief in future growth.
Inside the Headlines
The company’s board of directors approved a 3.3% hike in the annual dividend rate. The rate now stands at $3.72 per share. The previous annual dividend rate was $3.60. On a quarterly basis, the dividend rate now stands at 93 cents per share, up from the previous rate of 90 cents.
The company will pay the revised quarterly dividend on Dec 4, 2020, to shareholders of record as of Nov 13. This dividend pertains to the fourth quarter of 2020.
Sound Capital-Allocation Strategies
Honeywell follows sound capital-allocation strategies, aiming to improve values for shareholders. Free resources are primarily used for product development, expansion of manufacturing capacity, making acquisitions, and rewarding shareholders through dividend payments and share buybacks.
In the first half of 2020, the company repurchased shares worth $1,985 million (including buyback worth $62 million in the second quarter of 2020). In the year-ago period, share buybacks amounted to $2,650 million. Exiting the second quarter of 2020, the company had $5 billion worth of share buyback authorization left.
Also, it distributed dividends of $1,285 million in the first half of this year, up from $1,203 million in the first half of 2019. Notably, the quarterly dividend rate was hiked by 10% in September last year.
Zacks Rank & Estimates Trend
With a market capitalization of $113.3 billion, Honeywell currently carries a Zacks Rank #4 (Sell). It is facing headwinds from the market disturbances caused by the pandemic, and volatility in oil prices and forex woes. However, strength in space and defense businesses as well as increased demand for warehouse automation products and medical sensors, and personal protective equipment is a likely tailwind.
In the past three months, the company’s shares have gained 12.7% compared with 8.2% growth recorded by the industry.
In the past 60 days, Honeywell’s earnings estimates have been decreased by 0.6% to $6.90 for 2020 and 0.6% to $7.70 for 2021. Notably, there were three downward revisions for 2020 and one for 2021 estimates and no upward revisions for both years.
Some better-ranked stocks in the industry are Griffon Corporation (GFF - Free Report) , Danaher Corporation (DHR - Free Report) and Raven Industries, Inc. . While Griffon currently sports a Zacks Rank #1 (Strong Buy), both Danaher and Raven carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these companies improved for the current year. Further, earnings surprise for the last reported quarter was 391.67% for Griffon, 35.85% for Danaher and 212.5% for Raven.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Honeywell's (HON) Board Okays 3.3% Hike in Dividend Rate
Honeywell International Inc. (HON - Free Report) announced rewards for its shareholders in the form of a hike in the annual dividend rate. This hike is its 11th consecutive yearly increase.
It is worth noting here that the company’s shares gained 1.7% yesterday, ending the trading session at $161.49.
We believe that such shareholder-friendly policies of Honeywell reflect a strong cash position and belief in future growth.
Inside the Headlines
The company’s board of directors approved a 3.3% hike in the annual dividend rate. The rate now stands at $3.72 per share. The previous annual dividend rate was $3.60. On a quarterly basis, the dividend rate now stands at 93 cents per share, up from the previous rate of 90 cents.
The company will pay the revised quarterly dividend on Dec 4, 2020, to shareholders of record as of Nov 13. This dividend pertains to the fourth quarter of 2020.
Sound Capital-Allocation Strategies
Honeywell follows sound capital-allocation strategies, aiming to improve values for shareholders. Free resources are primarily used for product development, expansion of manufacturing capacity, making acquisitions, and rewarding shareholders through dividend payments and share buybacks.
In the first half of 2020, the company repurchased shares worth $1,985 million (including buyback worth $62 million in the second quarter of 2020). In the year-ago period, share buybacks amounted to $2,650 million. Exiting the second quarter of 2020, the company had $5 billion worth of share buyback authorization left.
Also, it distributed dividends of $1,285 million in the first half of this year, up from $1,203 million in the first half of 2019. Notably, the quarterly dividend rate was hiked by 10% in September last year.
Zacks Rank & Estimates Trend
With a market capitalization of $113.3 billion, Honeywell currently carries a Zacks Rank #4 (Sell). It is facing headwinds from the market disturbances caused by the pandemic, and volatility in oil prices and forex woes. However, strength in space and defense businesses as well as increased demand for warehouse automation products and medical sensors, and personal protective equipment is a likely tailwind.
In the past three months, the company’s shares have gained 12.7% compared with 8.2% growth recorded by the industry.
In the past 60 days, Honeywell’s earnings estimates have been decreased by 0.6% to $6.90 for 2020 and 0.6% to $7.70 for 2021. Notably, there were three downward revisions for 2020 and one for 2021 estimates and no upward revisions for both years.
Honeywell International Inc. Price and Consensus
Honeywell International Inc. price-consensus-chart | Honeywell International Inc. Quote
Stocks to Consider
Some better-ranked stocks in the industry are Griffon Corporation (GFF - Free Report) , Danaher Corporation (DHR - Free Report) and Raven Industries, Inc. . While Griffon currently sports a Zacks Rank #1 (Strong Buy), both Danaher and Raven carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these companies improved for the current year. Further, earnings surprise for the last reported quarter was 391.67% for Griffon, 35.85% for Danaher and 212.5% for Raven.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>