Honeywell International (NASDAQ:HON) Is Paying Out A Larger Dividend Than Last Year

Honeywell International Inc. (NASDAQ:HON) has announced that it will be increasing its periodic dividend on the 5th of December to $1.19, which will be 5.3% higher than last year's comparable payment amount of $1.13. Based on this payment, the dividend yield for the company will be 2.1%, which is fairly typical for the industry.

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Honeywell International's Payment Could Potentially Have Solid Earnings Coverage

We aren't too impressed by dividend yields unless they can be sustained over time. The last dividend was quite easily covered by Honeywell International's earnings. This means that a large portion of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 28.8%. If the dividend continues along recent trends, we estimate the payout ratio will be 40%, which is in the range that makes us comfortable with the sustainability of the dividend.NasdaqGS:HON Historic Dividend October 29th 2025

Check out our latest analysis for Honeywell International

Honeywell International Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was $2.07 in 2015, and the most recent fiscal year payment was $4.52. This implies that the company grew its distributions at a yearly rate of about 8.1% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

We Could See Honeywell International's Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. Honeywell International has seen EPS rising for the last five years, at 6.5% per annum. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.

Honeywell International Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Honeywell International is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 2 warning signs for Honeywell International that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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