Honeywell International Inc.

HON
Industrials
$227.92
2.03%Overvalued

Honeywell International Inc. (HON) is a Industrials company that currently yields 2.03% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $185.74 and the overvaluation threshold at $239.67. Honeywell International Inc. holds a quality score of 45/100 (Average), reflecting 14 consecutive years of dividend growth with a 74% payout ratio. The 5-year dividend CAGR stands at 5.1%.

HON Dividend Yield History — Weiss Valuation

Underval. $185.74Overval. $239.67

Distance to undervalued

Entry price is stretched

Needs 18.5% downside to reach the Weiss buy zone

Undervaluation starts near $185.74, where the annual dividend would imply roughly 2.50% yield. That is 0.46% above today's yield.

Buy-zone price

$185.74

Target yield

2.50%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

74%

Earnings coverage leaves room for noise.

Cash payout

103%

Confirm cash conversion and one-off effects.

Dividend growth

5.1%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Honeywell International Inc. is trading near its historical overvaluation band.

Current yield 2.0% vs historical max 3.1% (65% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 74%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 45/100 quality score says the headline yield needs extra skepticism.

Free cash flow payout is above 100%, so cash coverage is the first risk to unpack.

HON Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$214

Year 10 Income

$422

Yield on Cost

4.37%

Total Income

$3,053

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

HON Dividend Quality Score

Quality Score

45/ 100

Average

Payout Ratio5/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$227.92
Annual Dividend$4.64
Current Yield2.03%
Yield — Max (10Y)3.13%
Yield — Min (10Y)2.00%
Undervalued Below$185.74
Overvalued Above$239.67
Payout Ratio74.12%
CAGR Dividend 5Y5.1%
CAGR Dividend 10Y8.5%
Years No Cut14y

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14
consecutive years of dividend growth