Honeywell Increases Its Quarterly Cash Dividend by 10%



Honeywell increases its dividend

On September 28, Honeywell (HON) announced its dividend for the fourth quarter. The company declared a quarterly dividend of $0.82 per share, implying growth of 10% YoY (year-over-year). 

As a result, HON’s annual cash dividend will be $3.28 per share.

The dividend increase will take effect in the fourth quarter. To be eligible for the dividend, investors must hold HON shares as of November 16. The dividend is expected to be paid on December 7.

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Darius Adamczyk, Honeywell’s chair and CEO, said, “Honeywell remains committed to delivering value to shareowners through our aggressive capital deployment strategy. Since 2010, and including today’s announcement, we have increased the dividend rate 10% or more nine times. With our strong outlook, significant balance sheet capacity, and positive trends in our major end markets, Honeywell is well positioned to continue our track record of performance in 2019 and beyond.”

Dividend growth

Since 2012, HON’s dividend has grown at a compound annual growth rate of 12.2%. At the end of the second quarter, Honeywell had 755 million outstanding shares, which would translate into it spending $619.1 on dividend payments. However, Honeywell is expected to buy back a few of its outstanding common shares in the third quarter, as it has done so in the past.

Investors can indirectly hold Honeywell by investing in the Invesco Aerospace & Defense ETF (PPA), which holds 7.1% in Honeywell. The fund also provides exposure to Lockheed Martin (LMT), Boeing (BA), and Textron (TXT) at weights of 7.2%, 6.9%, and 3.9%, respectively.


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