Oversold Honeywell (HON) Could Offer Industrial Strength with Dividend Reliability

Honeywell International Inc. (NASDAQ:HON) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds.

The company has been grabbing investors’ attention due to its strong dividend policy and robust balance sheet. In its recently announced earnings for the second quarter of 2025, the company reported revenue of $10.35 billion, which showed an 8.09% growth from the same period last year. The revenue surpassed analysts’ estimates by $289.2 million.

Honeywell International Inc. (NASDAQ:HON) finalized the $2.2 billion acquisition of Sundyne, announced the £1.8 billion purchase of Johnson Matthey’s Catalyst Technologies division, and completed the $1.3 billion sale of its PPE business. Operating income rose by 7%, while segment profit increased by 8% to reach $2.4 billion, driven primarily by growth in the Building Automation segment.

Honeywell International Inc. (NASDAQ:HON) reported an operating cash flow of $1.3 billion, and its free cash flow was $1 billion, which showed the company’s solid cash position. The company ended the quarter with $10.4 billion available in cash and cash equivalents. HON has raised its payouts for 14 consecutive years and offers a quarterly dividend of $1.13 per share. As of July 25, the stock has a dividend yield of 2.02%.

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.