In a shareholder-friendly move, Honeywell International Inc. HON 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.
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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 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 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 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%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.Honeywell International Inc. (HON) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
RBC Bearings Incorporated (RBC) : Free Stock Analysis Report
Federal Signal Corporation (FSS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
