September 14, 2025 a 11:32 am
HON: Dividend Analysis - Honeywell International Inc.
📊 Honeywell International Inc. (HON) exhibits a robust dividend profile, characterized by a steadfast 56-year history of increases. With a dividend yield of 2.09% and substantial coverage ratios, it remains an attractive choice for income investors. The stable growth rate in recent years indicates a resilient business model capable of sustaining future distributions. The lack of dividend cuts or suspensions further enhances its reliability.
Overview
🗣️ As a prominent player in the Industrial sector, Honeywell offers a moderate dividend yield of 2.09%. The current dividend per share stands at $4.46, reflecting 56 years of increased or sustained payments. Importantly, there have been no recent cuts or suspensions, underscoring the company's commitment to returning value to shareholders.
| Metric | Details |
|---|---|
| Sector | Industrial |
| Dividend Yield | 2.09% |
| Current Dividend per Share | $4.46 |
| Dividend History | 56 years |
| Last Cut/Suspension | None |
Dividend History
📈 The comprehensive dividend history of Honeywell demonstrates a commitment to shareholder value. It includes uninterrupted and increasing payouts over 56 years, impressively underscoring stability and strong financial management.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.39 |
| 2024 | 4.37 |
| 2023 | 4.17 |
| 2022 | 3.97 |
| 2021 | 3.77 |
Dividend Growth
📉 Over the past 3 and 5 years, Honeywell's average dividend growth rates have been approximately 5.05% and 5.40% respectively. These metrics indicate moderate yet reliable growth, appealing to investors seeking income expansion alongside capital appreciation.
| Time | Growth |
|---|---|
| 3 years | 5.05% |
| 5 years | 5.40% |
✅ The average dividend growth is 5.40% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
📝 A crucial aspect of dividend sustainability is Honeywell's payout ratios. The EPS-based payout ratio is 49.72%, while the Free Cash Flow-based ratio is higher at 56.98%. These figures are within acceptable limits, suggesting a balanced approach towards retaining earnings for growth and rewarding investors.
| Key Figure | Ratio |
|---|---|
| EPS-based | 49.72% |
| Free Cash Flow-based | 56.98% |
⚠️ The EPS ratio of 49.72% and FCF ratio of 56.98% indicate prudent financial management, balancing dividends with growth investments.
Cashflow & Capital Efficiency
💡 Evaluating Honeywell's cash flows and efficiency metrics reveals a positive outlook. Healthy free cash flow yield and capital allocation ratios, like CAPEX to operating cash flow, present a strong case for sustained dividend payments without compromising capital expenditures.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.36% | 3.09% | 3.11% |
| Earnings Yield | 3.88% | 4.07% | 3.42% |
| CAPEX to Operating Cash Flow | 19.09% | 19.46% | 14.52% |
| Stock-based Compensation to Revenue | 0.50% | 0.55% | 0.53% |
| Free Cash Flow / Operating Cash Flow Ratio | 80.91% | 80.54% | 85.48% |
| Return on Invested Capital | 10.48% | 13.25% | 11.99% |
🔍 Despite variations, Honeywell's stable cash flow supports capital expenditures and dividends confidently, showcasing sound capital management.
Balance Sheet & Leverage Analysis
📜 Honeywell's balance sheet reflects solid leverage ratios and liquidity, enhancing confidence in its capacity for consistent dividend payouts and exploration of growth opportunities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.73 | 1.36 | 1.23 |
| Debt-to-Assets | 0.43 | 0.35 | 0.33 |
| Debt-to-Capital | 0.63 | 0.58 | 0.55 |
| Net Debt to EBITDA | 2.25 | 1.50 | 1.36 |
| Current Ratio | 1.31 | 1.27 | 1.25 |
| Quick Ratio | 1.01 | 0.93 | 0.98 |
| Financial Leverage | 4.04 | 3.88 | 3.73 |
💼 Stability in these metrics indicates Honeywell's sound financial structure, facilitating both strategic investments and consistent dividend payouts.
Fundamental Strength & Profitability
🌟 Honeywell's profitability metrics such as return on equity and margins are indicative of a strong competitive position. High return on equity and consistent net profit margins ensure robust operational performance.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 30.64% | 35.68% | 29.74% |
| Return on Assets | 7.59% | 9.20% | 7.97% |
| Net Margin | 14.82% | 15.44% | 14.01% |
| EBIT Margin | 21.49% | 21.62% | 19.16% |
| EBITDA Margin | 24.95% | 24.83% | 22.56% |
| Gross Margin | 38.34% | 39.00% | 38.40% |
| R&D to Revenue | 4.29% | 3.97% | 4.17% |
🔎 Positive profitability metrics affirm Honeywell's capacity to generate profits efficiently and support dividend payouts.
Price Development
Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 34/40
Rating
🏆 Honeywell International Inc. boasts a comprehensive dividend strategy, demonstrating consistency and resilience. The company's robust financial health underpins a stable dividend, making it an excellent selection for dividend-focused portfolios looking for income and stability combined.