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 (HON) Rewards Shareholders With 5.4% Dividend Hike
Read MoreHide Full Article
Honeywell International Inc. (HON - Free Report) recently announced that it is rewarding shareholders with a hike in the annual dividend rate. This marks its 12th dividend rate increase in the past 11 years.
The company’s shares inched up 1.6% yesterday to eventually close the trading session at $215.65.
Inside the Headlines
As revealed, Honeywell’s board of directors approved a 5.4% hike in the annual dividend rate. The rate currently stands at $3.92 per share, an increase from the previous annual dividend rate of $3.72. On a quarterly basis, the dividend rate is pegged at 98 cents per share, up from the previous rate of 93 cents.
The company will pay the revised quarterly dividend on Dec 3, 2021, to shareholders of record as of Nov 12. This dividend pertains to the fourth quarter of 2021.
Sound Shareholder-Friendly Policies
Honeywell firmly believes in rewarding shareholders handsomely through dividend payments. In the last three years (2018-2020), the company’s cash dividend paid out increased from $3.05 per share in 2018 to $3.63 in 2020. In September 2020, it had raised the annual dividend rate by 3.3%.
The company follows sound capital-allocation strategies to enhancing shareholders’ values. In the first half of 2021, it paid out dividends worth $1,304 million to shareholders and repurchased shares worth $1,849 million.
We believe that such shareholder-friendly policies of the company reflect a strong cash position. In second-quarter 2021, Honeywell’s free cash flow increased 17% on a year-over-year basis to $1,468 million. For 2021, the company expects free cash flow in the range of $5.3-$5.6 billion.
Zacks Rank, Price Performance and Estimate Trend
Honeywell, with approximately $148.9 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company stands to gain from solid momentum in its warehouse and workflow solutions business as well as recovery in the commercial aerospace business in the quarters ahead. However, headwinds across its defense and space business might affect performance in the near term.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have declined 2.6% against the industry’s increase of 0.1%.
The Zacks Consensus Estimate for 2021 and 2022 earnings has been stable at $8.10 and $9.21, respectively, in the past 60 days.
Stocks to Consider
Some better-ranked stocks from the same space are Raven Industries, Inc. , Carlisle Companies Incorporated (CSL - Free Report) and Griffon Corporation (GFF - Free Report) . While Raven currently sports a Zacks Rank #1 (Strong Buy), Carlisle and Griffon carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven pulled off an earnings surprise of 42.59%, on average, in the trailing four quarters.
Carlisle delivered an earnings surprise of 39.38%, on average, in the trailing four quarters.
Griffon reported an earnings surprise of 26.02%, on average, in the trailing four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Honeywell (HON) Rewards Shareholders With 5.4% Dividend Hike
Honeywell International Inc. (HON - Free Report) recently announced that it is rewarding shareholders with a hike in the annual dividend rate. This marks its 12th dividend rate increase in the past 11 years.
The company’s shares inched up 1.6% yesterday to eventually close the trading session at $215.65.
Inside the Headlines
As revealed, Honeywell’s board of directors approved a 5.4% hike in the annual dividend rate. The rate currently stands at $3.92 per share, an increase from the previous annual dividend rate of $3.72. On a quarterly basis, the dividend rate is pegged at 98 cents per share, up from the previous rate of 93 cents.
The company will pay the revised quarterly dividend on Dec 3, 2021, to shareholders of record as of Nov 12. This dividend pertains to the fourth quarter of 2021.
Sound Shareholder-Friendly Policies
Honeywell firmly believes in rewarding shareholders handsomely through dividend payments. In the last three years (2018-2020), the company’s cash dividend paid out increased from $3.05 per share in 2018 to $3.63 in 2020. In September 2020, it had raised the annual dividend rate by 3.3%.
The company follows sound capital-allocation strategies to enhancing shareholders’ values. In the first half of 2021, it paid out dividends worth $1,304 million to shareholders and repurchased shares worth $1,849 million.
We believe that such shareholder-friendly policies of the company reflect a strong cash position. In second-quarter 2021, Honeywell’s free cash flow increased 17% on a year-over-year basis to $1,468 million. For 2021, the company expects free cash flow in the range of $5.3-$5.6 billion.
Zacks Rank, Price Performance and Estimate Trend
Honeywell, with approximately $148.9 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company stands to gain from solid momentum in its warehouse and workflow solutions business as well as recovery in the commercial aerospace business in the quarters ahead. However, headwinds across its defense and space business might affect performance in the near term.
In the past three months, the company’s shares have declined 2.6% against the industry’s increase of 0.1%.
The Zacks Consensus Estimate for 2021 and 2022 earnings has been stable at $8.10 and $9.21, respectively, in the past 60 days.
Stocks to Consider
Some better-ranked stocks from the same space are Raven Industries, Inc. , Carlisle Companies Incorporated (CSL - Free Report) and Griffon Corporation (GFF - Free Report) . While Raven currently sports a Zacks Rank #1 (Strong Buy), Carlisle and Griffon carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven pulled off an earnings surprise of 42.59%, on average, in the trailing four quarters.
Carlisle delivered an earnings surprise of 39.38%, on average, in the trailing four quarters.
Griffon reported an earnings surprise of 26.02%, on average, in the trailing four quarters.