Honeywell increases annual dividend by 5.3% to $4.76 per share

CHARLOTTE - Honeywell (NASDAQ:HON), the $132 billion industrial conglomerate, announced Friday that its Board of Directors has approved a 5.3% increase in the company's regular annual cash dividend from $4.52 to $4.76 per share, bringing the dividend yield to 2.18%.

The increased dividend will take effect with the fourth-quarter payment of $1.19 per share, payable on December 5, 2025, to shareholders of record as of November 14, 2025.

"Our decision to raise the dividend reflects both our focus on value creation and our confidence in the future," said Vimal Kapur, Chairman and CEO of Honeywell, in a press release statement.

This marks the 16th dividend increase in 15 consecutive years for the industrial conglomerate, which is currently preparing to transform into three independent companies.

Honeywell operates across multiple industries with business segments including Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions.

The company's dividend announcement comes as Honeywell continues its previously announced plans to spin off its Advanced Materials business into a standalone public company called Solstice Advanced Materials, separate its Automation and Aerospace Technologies units, and evaluate strategic alternatives for its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. The company maintains a moderate debt level and operates with strong financial metrics, including a healthy current ratio of 1.29.

In other recent news, Honeywell International has made significant strides across various fronts. The company announced that its quantum computing subsidiary, Quantinuum, has secured approximately $600 million in equity funding, valuing the unit at $10 billion. This funding round saw participation from new investors like Quanta Computer and NVIDIA's venture capital arm, NVentures, as well as existing shareholders such as JPMorgan Chase. In addition, Honeywell's spin-off unit, Solstice Advanced Materials, has priced a $1 billion senior notes offering due in 2033, marking a key step toward its planned separation. The notes will carry an interest rate of 5.625% per annum.

Furthermore, Honeywell has entered into a Memorandum of Understanding with Redwire Corporation to advance quantum-secured satellite communication systems, supported by the European Space Agency. This partnership aims to create a fully functional system by mid-2026. Meanwhile, UBS has reiterated its Buy rating for Honeywell, maintaining a price target of $268.00, citing the company's ongoing transformation initiatives. The firm highlights the Solstice initiative as a pivotal step toward Honeywell becoming a pure-play building and industrial automation company, projecting over $20 billion in revenue.

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