February 27, 2026 a 02:47 am
HON: Dividend Analysis - Honeywell International Inc.
Honeywell International Inc. presents a robust dividend profile, strengthening its appeal to income-focused investors. Its consistent dividend growth over decades signifies a strong commitment to returning value to shareholders. Despite moderate yield, the company's financial health and industrial prowess underscore potential for steady dividend support.
📊 Overview
Honeywell International Inc. operates within the industrial sector, maintaining a dividend yield of 1.87%, with a current dividend of $4.66 per share. The firm boasts a celebrated history of 57 years without recent cuts or suspensions, highlighting its commitment to reliable shareholder returns.
| Metric | Details |
|---|---|
| Sector | Sector: Industrials |
| Dividend Yield | 1.87% |
| Current Dividend per Share | $4.66 USD |
| Dividend History | 57 years |
| Last Cut or Suspension | None |
📉 Dividend History
Honeywell's longevity and growing dividends emphasize its reliability and capacity to deliver consistent shareholder returns. Such a history is indicative of financial resilience and disciplined capital management.
| Year | Dividend Per Share |
|---|---|
| 2026 | $1.19 |
| 2025 | $4.39 |
| 2024 | $4.12 |
| 2023 | $3.93 |
| 2022 | $3.74 |
📈 Dividend Growth
Honeywell achieves average dividend growth rates of 5.43% over 3 years and 5.09% over 5 years, which underscores moderate but sustainable growth. These figures illustrate a stable yet progressive approach to increasing dividends.
| Time | Growth |
|---|---|
| 3 years | 5.43% |
| 5 years | 5.09% |
The average dividend growth is 5.09% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial indicators of dividend sustainability. Honeywell's EPS-based payout ratio is 57.57%, while the free cash flow-based ratio is 54.83%, both within reasonable industry norms.
| Key Figure | Ratio |
|---|---|
| EPS-based | 57.57% |
| Free Cash Flow-based | 54.83% |
The payout based on EPS and FCF is well-positioned to sustain current dividend levels while allowing room for growth.
Cashflow & Capital Efficiency
An analysis of cash flow metrics reveals Honeywell's commitment towards maintaining efficient capital usage. The Free Cash Flow and Earnings Yield figures indicate a strong cash-generating ability, crucial for funding dividends.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 3.09% | 3.36% | 4.33% |
| Earnings Yield | 4.07% | 3.88% | 4.12% |
| CAPEX to Operating Cash Flow | 19.46% | 19.09% | 15.46% |
| Stock-based Compensation to Revenue | 0.55% | 0.50% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.81 | 0.81 | 0.85 |
| Return on Invested Capital | 13.25% | 10.48% | 9.33% |
The cash flow data suggests robust financial handling, supporting Honeywell’s dividend strategy while investing in growth and innovation.
Balance Sheet & Leverage Analysis
Evaluating debt metrics and liquidity ratios provides insights into the company's leverage strategy and financial stability. Honeywell's conservative use of debt supports resilience against fiscal turbulence.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.36 | 1.73 | 2.24 |
| Debt-to-Assets | 0.35 | 0.43 | 0.47 |
| Debt-to-Capital | 0.58 | 0.63 | 0.69 |
| Net Debt to EBITDA | 1.50 | 2.25 | 2.55 |
| Current Ratio | 1.27 | 1.31 | 1.32 |
| Quick Ratio | 0.93 | 1.01 | 1.05 |
| Financial Leverage | 3.88 | 4.04 | 4.80 |
Honeywell demonstrates careful debt management, with leverage maintaining under control, ensuring facility to uphold dividend promises even during fluctuating market conditions.
Fundamental Strength & Profitability
Key profitability metrics emphasize Honeywell’s capability to generate earnings relative to resources spent. Widespread strategies in R&D investment reflect a commitment to future growth.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 35.68% | 30.64% | 33.28% |
| Return on Assets | 9.20% | 7.59% | 6.93% |
| Net Margin | 15.44% | 14.82% | 13.73% |
| EBIT Margin | 21.62% | 21.49% | 19.47% |
| EBITDA Margin | 24.83% | 24.95% | 23.18% |
| Gross Margin | 39.00% | 38.34% | 36.93% |
| R&D to Revenue | 3.97% | 3.99% | 4.84% |
Strong ROE and Return on Assets speak to Honeywell’s efficiency, translating top-line revenue into profit, supporting stable dividend payouts.
Price Development
🗣️ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
✅ Rating
Honeywell International Inc. is rated highly for its steadfast dividend practices, robust financials, and management excellence. It is recommended for investors seeking steady income with potential for long-term capital appreciation within a stable industrial powerhouse.