Honeywell: A Safe and Steady Dividend Stock in the Industrial Space

Honeywell International Inc. (NASDAQ:HON) is included among the 13 Best Industrial Dividend Stocks to Buy Right Now.

The company has been grabbing investors’ attention due to its solid balance sheet. It has raised its dividend 15 times over the past 14 consecutive years. As noted in its 2025 proxy statement, it has strategically allocated $14.6 billion across mergers and acquisitions, capital investments, share repurchases, and dividend payouts to strengthen its portfolio and boost shareholder returns.

Honeywell International Inc. (NASDAQ:HON)’s strong cash flow also supports its ability to maintain dividend payments. In the first quarter of 2025, the company reported $600 million in operating cash flow and $300 million in free cash flow, marking a 61% increase from the prior year. A free cash flow margin of 13% further underscores its positive financial outlook.

For the full year 2025, Honeywell International Inc. (NASDAQ:HON) expects operating cash flow to be between $6.7 billion and $7.1 billion, with free cash flow projected in the range of $5.4 billion to $5.8 billion. The company pays a quarterly dividend of $1.13 per share and has a dividend yield of 1.92%, as of July 13.

While we acknowledge the potential of HON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.