Honeywell dividend growth doesn't look good
5 year CAGR drops below 5% after a 4.6% hike in 2024
On September 27, 2024, Honeywell International (HON) announced a new dividend hike of 4.6% to $1.13 quarterly per share. This marks the 14th consecutive year of dividend increases by the industrial company with a 5 year CAGR of 4.7%. At a stock price of $206.71 the dividend yields 2.2% to HON shareholders.
Last year Honeywell hiked the dividend by 4.9%, with dividend growth now slowing for the 3rd consecutive year. Because of this new dividend hike of 4.6% the 5 year CAGR for Honeywell drops below 5% for the first time in many years. It’s interesting to see that dividend growth and stock price go hand in hand with Honeywell with roughly a double in the last decade. That’s okay, but lags many other industrials.
Honeywell announced that its Board of Directors has approved an increase in the company's regular annual cash dividend from $4.32 to $4.52 per share. The increase will be effective starting with the fourth-quarter dividend of $1.13 per share, which was declared today, and is payable on December 6, 2024, out of surplus to holders of record at the close of business on November 15, 2024.
"By further aligning our portfolio with the three compelling megatrends -- automation, the future of aviation, and the energy transition -- we continue accelerating progress against our disciplined commitment to deploy at least $25 billion toward dividends, acquisitions, capital expenditures and share buybacks through 2025," said Vimal Kapur, chairman and chief executive officer of Honeywell. "This marks the 15(th) time in 14 consecutive years that we are increasing our dividend as we remain focused on delivering value for our shareholders."
Honeywell International Inc. is a technology and manufacturing company. The company's business segments are Aerospace, Honeywell Building Technologies, Performance Materials and Technologies and Safety and Productivity Solutions. Honeywell's customers include airlines, defense and space contractors, commercial building owners and petrochemical companies. Honeywell was incorporated in Delaware in 1985 and has paid a dividend to shareholders without interruption every year since at least 1986.
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