April 14, 2026 a 03:31 pm
HON: Dividend Analysis - Honeywell International Inc.
Honeywell International Inc. stands as a robust candidate for income-focused investors. With a long-standing dividend payment history of 57 years, the solid consistency reflects its commitment to returning capital to shareholders. Its reasonable payout ratios and steady dividend growth present a stable investment choice.
📊 Overview
The overview of Honeywell's dividend profile highlights a commitment to shareholder returns and signals a well-managed payout policy. The current metrics underscore its sustainability and growth prospects.
| Metric | Value |
|---|---|
| Sector | Industrials |
| Dividend yield | 1.85% |
| Current dividend per share | 4.66 USD |
| Dividend history | 57 years |
| Last cut or suspension | None |
🗣️ Dividend History
The longevity and consistency of Honeywell’s dividend payment underpin its reliability as a core holding for dividend growth investing. Its history reflects resilience across economic cycles.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.19 |
| 2025 | 4.39 |
| 2024 | 4.12 |
| 2023 | 3.93 |
| 2022 | 3.74 |
📈 Dividend Growth
Honeywell demonstrates promising dividend growth metrics over recent years, indicative of its strong underlying financial performance and strategic management.
| 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
The payout ratios provide insights into Honeywell’s capability of sustaining its dividend payments without hampering its financial health, ensuring a balanced approach to earnings and cash flow management.
| Key figure | Ratio |
|---|---|
| EPS-based | 62.56% |
| Free cash flow-based | 54.90% |
The EPS payout ratio of 62.56% and FCF payout ratio of 54.90% illustrate a well-managed dividend policy that aligns returns to shareholders with long-term growth objectives while preserving sufficient reinvestment capacity.
📊 Cashflow & Capital Efficiency
Honeywell's cash flow metrics and capital efficiency ratios emphasize its operational efficacy and prudent capital allocation strategies to enhance shareholder value.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Free Cash Flow Yield | 4.33% | 3.36% | 3.09% |
| Earnings Yield | 3.79% | 3.88% | 4.07% |
| CAPEX to Operating Cash Flow | 15.45% | 19.09% | 19.46% |
| Stock-based Compensation to Revenue | - | 0.56% | 0.61% |
| Free Cash Flow / Operating Cash Flow Ratio | 84.54% | 80.91% | 80.54% |
The cash flow and capital efficiency figures indicate Honeywell’s robust framework to generate and efficiently allocate capital, ensuring sustained growth and shareholder satisfaction through operational efficiencies and strategic reinvestments.
⚖️ Balance Sheet & Leverage Analysis
A strong balance sheet and favorable leverage ratios signal Honeywell’s solid financial foundations and its focus on sustainable debt management to navigate economic uncertainties.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Debt-to-Equity | 2.24 | 1.73 | 1.36 |
| Debt-to-Assets | 0.47 | 0.43 | 0.35 |
| Debt-to-Capital | 0.69 | 0.63 | 0.58 |
| Net Debt to EBITDA | 2.69 | 2.56 | 1.71 |
| Current Ratio | 1.32 | 1.31 | 1.27 |
| Quick Ratio | 1.05 | 1.01 | 0.93 |
| Financial Leverage | 4.80 | 4.04 | 3.88 |
Our analysis of Honeywell's leverage metrics exhibits controlled debt levels and a solid liquidity framework, which enhances its financial stability and potential for strategic expansion.
💪 Fundamental Strength & Profitability
Honeywell's robust profitability indicators and strong margins highlight its efficient cost management and competitive edge in driving sustainable earnings growth.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Return on Equity | 30.63% | 30.64% | 35.68% |
| Return on Assets | 6.38% | 7.59% | 9.20% |
| Net Margin | 12.63% | 16.43% | 17.14% |
| EBIT Margin | 18.21% | 21.00% | 21.02% |
| EBITDA Margin | 21.92% | 24.32% | 24.07% |
| Gross Margin | 36.93% | 38.47% | 37.48% |
| Research & Development to Revenue | 4.84% | 4.19% | 4.17% |
Honeywell exhibits strong profitability ratios supported by its efficient utilization of assets and generating superior returns through strategic market positioning, reinforcing long-term confidence in its operational capabilities.
🔍 Price Development
🏆 Dividend Scoring System
Below is Honeywell's performance according to our dividend scoring criteria, reflecting its positioning as a dividend-paying entity.
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
✍️ Rating
Based on our comprehensive analysis, Honeywell International Inc. upholds a strong dividend-paying reputation with commendable metrics. Although its current yield is modest, its reliable payout policy, coupled with consistent historical payments and growth prospects, render it a worthy consideration for dividend growth investors seeking stability and gradual income enhancement.
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