Honeywell dividend
MyStockButler's October 2026 analysis: Honeywell paid $7.54 per share in 2021 and $9.16 in 2025. Coverage depends on cash generation: conventional free cash flow was $530 million, while Honeywell’s own measure was $688 million after adding back separation payments.
How much does Honeywell pay in dividends?
Dividends rose from $7.54 per share in 2021 to $9.16 in 2025. Their sustainability depends on continuing operations funding capital needs and distributions across several periods. That cash test leads to the balance sheet and debt burden.
Is Honeywell’s dividend covered by its cash?
Honeywell’s own measure adds back $158 million of separation payments, turning $530 million of conventional free cash flow into $688 million. That may better describe the intended ongoing business, but the payments still used shareholders’ cash. The $1.4 billion asbestos-liability payment in 2025 makes the same point.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends paid | 2,976 | 2,902 | 2,855 | 2,719 | 2,626 |
| − Share buybacks | 3,804 | 1,655 | 3,715 | 4,200 | 3,380 |
| + New shares sold | 237 | 537 | 196 | 320 | 229 |
| Cash and short-term investments | 12,716 | ||||
| − Total debt | 34,571 | ||||
| Paid to shareholders | 6,780 | 4,557 | 6,570 | 6,919 | 6,006 |
What this means. The company paid shareholders 6,780 million dollars in 2025, but selling new shares brought in 237 million dollars, so the net cash sent to shareholders was lower.
What could change Honeywell’s dividend?
Management guides 2026 sales to $20.0–$20.1 billion and 4%–5% organic growth. It targets a 20.5% segment margin. Adjusted EPS is guided to $8.40–$8.45. The company’s own free cash flow is guided to $2.1 billion, with separation and Quantinuum payments added back. Management’s 2029 ambition is about $12 of adjusted EPS, requiring growth beyond the 4%–6% organic-sales framework.
The dividend begins at $2.80 per share because the current quarterly payment is $0.70. The base reaches $2.94 and then $3.09 through 5% increases, matching the recent dividend record. The bear holds at $2.80 because cash goes to debt and transition costs. The bull reaches $3.01 and then $3.23 through faster cash recovery.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 3,000 (2,500 / 3,200) | 3,400 (2,400 / 3,800) | 3,800 (2,300 / 4,500) |
| Shares (millions) | 317 (319 / 314) | 316 (320 / 312) | 315 (321 / 309) |
| Dividends per share | 2.80 (2.80 / 2.80) | 2.94 (2.80 / 3.01) | 3.09 (2.80 / 3.23) |
| Price to earnings | 20.00 (15.00 / 24.00) | 20.00 (13.00 / 25.00) | 19.00 (11.00 / 26.00) |
What this means. Price to earnings shows how many dollars investors pay for each dollar the company earns.
What is Honeywell’s dividend yield today?
The dividend yield is only 1.3%, so the investment depends mainly on improving earnings and the multiple investors will pay for them.
| Today (Oct 23, 2026) | |
|---|---|
| Share price | 218.31 |
| Market value (calculated) | 69,282.54 |
| P/E, last 12 months (calculated) | 12.5x |
| P/E, next 12 months (calculated) | 22.2x |
| EV / revenue, last 12 months (calculated) | 3.9x |
| Dividend yield (calculated) | 1.3% |