CHARLOTTE, N.C. - Honeywell International Inc. (NASDAQ: NASDAQ:HON) has announced an increase in its annual cash dividend, raising it from $4.32 to $4.52 per share. The new dividend rate will take effect with the fourth-quarter dividend of $1.13 per share, payable on December 6, 2024, to shareholders of record as of November 15, 2024.
This increment marks the 15th dividend increase in 14 consecutive years, reflecting Honeywell's consistent strategy of delivering shareholder value. Vimal Kapur, Honeywell's chairman and CEO, highlighted the company's alignment with key global megatrends such as automation, the future of aviation, and energy transition, which are central to the company's business strategy. Kapur also reiterated Honeywell's commitment to deploying at least $25 billion towards dividends, acquisitions, capital expenditures, and share repurchases through 2025.
Honeywell, a diversified technology and manufacturing leader, operates across various sectors including aerospace technologies, industrial automation, building automation, and energy and sustainability solutions. The company's focus is on addressing some of the world's most challenging issues with innovative solutions that aim to make the world more efficient, safe, and sustainable.
The announcement of the dividend increase is based on Honeywell's confidence in its financial performance and strategic initiatives. However, as with any forward-looking statements, the company's projections are subject to risks and uncertainties that could affect future results.
This dividend increase is part of Honeywell's broader financial strategy and is aimed at providing a steady return to its investors. The information regarding this dividend increase is based on a press release statement from Honeywell.
In other recent news, Honeywell has announced a partnership with Qualcomm (NASDAQ:QCOM) Technologies to develop a Multi-Modal Intelligent Agent for Honeywell mobile devices, aimed at improving efficiency in distribution centers and retail industries. This AI-enabled agent is expected to be available in early 2025. The company has also received a significant investment of $126.6 million from the U.S. Energy Department to establish a facility in Louisiana for producing a crucial electrolyte salt used in lithium batteries.
In the realm of stock analysis, Mizuho Securities has maintained an Outperform rating on Honeywell, suggesting potential for mergers and acquisitions. On the other hand, Morgan Stanley (NYSE:MS) initiated coverage with an Equalweight rating, expressing caution about the company's near-term recovery prospects.
The company's growth in the aerospace sector will largely depend on its ability to provide parts to major aircraft manufacturers, as supply chain issues persist in the industry. Honeywell is also undergoing a CFO transition, with Michael Stepniak set to replace Greg Lewis following the release of the company's fourth-quarter and full-year financial results for 2024. These are recent developments in Honeywell's ongoing business operations and strategies.
InvestingPro Insights
Honeywell's recent dividend increase aligns with its strong track record of shareholder returns, as highlighted by InvestingPro data. The company has now raised its dividend for 13 consecutive years, demonstrating a commitment to consistent shareholder value. This is further underscored by Honeywell's impressive 40-year streak of maintaining dividend payments.
The company's financial health appears robust, with a market capitalization of $135.79 billion and a revenue of $37.33 billion over the last twelve months as of Q2 2024. Honeywell's profitability is evident, with a gross profit of $14.02 billion and an operating income of $7.84 billion during the same period. The company's operating income margin stands at a healthy 21%, indicating efficient operations.
InvestingPro Tips suggest that Honeywell is a prominent player in the Industrial Conglomerates industry, operating with a moderate level of debt. This positions the company well to continue its dividend growth strategy while investing in key megatrends as outlined by CEO Vimal Kapur.
Investors should note that Honeywell is trading at a high P/E ratio of 23.66 relative to its near-term earnings growth, which may be a consideration for value-oriented investors. However, the stock generally trades with low price volatility, which could appeal to those seeking stability in their portfolio.
For readers interested in a deeper dive into Honeywell's financials and future prospects, InvestingPro offers 10 additional tips, providing a comprehensive view of the company's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.