Back to top

Image: Bigstock

Honeywell's Board Approves 5% Increase in Dividend Rate

Read MoreHide Full Article

Key Takeaways

  • Honeywell raised its dividend 5% to $1.19 per share, payable Dec. 5 to holders of record on Nov. 14.
  • This marks HON's 16th consecutive dividend hike, continuing a streak that began in 2010.
  • Strong cash flow backs HON's dividends, $3.6B in buybacks and $1.48B payouts in first-half 2025.

In a shareholder-friendly move, Honeywell International Inc. (HON - Free Report) has announced a hike in its dividend payout. The company increased its quarterly dividend by approximately 5% to $1.19 per share (annually: $4.76). The new dividend will be paid on Dec. 5, 2025, to shareholders of record as of Nov. 14.

The move underscores HON’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. The latest dividend hike marks Honeywell’s 16th consecutive raise since 2010. Prior to this, it had hiked its dividend by 5% to $1.13 per share in September 2024.

Strong cash flows allow Honeywell to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. Dividend payments totaled $1.48 billion in the first six months of 2025 and $2.9 billion in 2024. The company bought back shares worth $3.6 billion in the first six months of 2025 and $1.66 billion in 2024. We believe such disbursements highlight the company’s operational strength and commitment to enhance shareholders’ wealth.

Zacks Rank & Price Performance

Honeywell currently carries a Zacks Rank #3 (Hold). HON is well-positioned to benefit from strength in the commercial aviation and building automation businesses. The Aerospace segment is particularly strong, driven by strength in the defense business and growth in air transport flight hours. Strong demand across the commercial aviation aftermarket business is aiding the segment. However, persistent weakness in the Industrial Automation segment, due to a lower demand environment, is worrisome.

Zacks Investment Research
Image Source: Zacks Investment Research

In the past year, the company’s shares have inched up 0.7% against the industry’s decline of 1.1%.

The Zacks Consensus Estimate for HON’s 2025 earnings is pegged at $10.51 per share, up 0.4% from the 60-day-ago figure.

Stocks to Consider

Some better-ranked stocks from the same space are discussed below.

Federal Signal Corporation (FSS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FSS delivered a trailing four-quarter average earnings surprise of 5.7%. In the past 60 days, the Zacks Consensus Estimate for FSS’ 2025 earnings has increased 4.2%.

3M Company (MMM - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 4.4%.

In the past 60 days, the Zacks Consensus Estimate for MMM’s 2025 earnings has increased by a penny.

RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 3.8%.

In the past 60 days, the consensus estimate for RBC Bearings’ fiscal 2026 (ending March 2026) earnings has increased 1.6%.

Published in