Honeywell declares second-quarter dividend
In a press release on April 29, Honeywell (HON) declared a regular cash dividend for the second quarter of 2019. HON also announced the key dates for its dividend. To be eligible for this dividend, investors must hold Honeywell stock as of the close of May 24. The dividend is scheduled to be paid to eligible shareholders on June 14.
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HON has announced a dividend of $0.82 per share, which represents an increase of 10% over the previous year. However, there’s been no change in the dividend compared to the previous quarter. HON’s industrial peers Stanley Black & Decker (SWK), Textron (TXT), and United Technologies (UTX) have declared a second-quarter dividend of $0.66, $0.02, and $0.735, respectively. As of May 3, HON’s dividend yield stood at 1.9%, which is lower than the yield generated by the one-year risk-free Treasury bonds.
At the end of the first quarter of 2019, HON had 738.8 million outstanding shares. Assuming HON doesn’t buy back any shares until the record date, HON will be spending ~$605.8 million on dividend payments.
Stock price update
Honeywell continued its upward trend. The stock gained 0.75% and closed at $173.54 for the week ending May 3. The gain in the stock has resulted in Honeywell trading 15.5% above the 100-day moving average price of $150.29. Honeywell underperformed the Invesco Aerospace & Defense ETF (PPA) for the week, which gained 2.0%. PPA invests 7.2% of its portfolio in Honeywell.
The company’s 14-day RSI (relative strength index) is at 71, which indicates that the stock has moved into an overbought position and there could be some sell-off. An RSI of 70 and above shows that a stock has temporarily moved into the “overbought” position, while an RSI of 30 and below indicates that a stock has temporarily moved into the “oversold” position.