What Honeywell actually does

Honeywell makes technology for aircraft, factories, buildings and energy systems: avionics and engines, sensors and control systems, thermostats and security, and materials for refining. It is a long-standing industrial conglomerate that has been reshaping its portfolio.

How the business makes money

It sells products and software, and then earns more through service contracts, spare parts and upgrades. Aerospace, in particular, earns steady money from planes already in the air. The company has also made acquisitions and announced plans to separate parts of the business to make each simpler.

The dividend story

Honeywell pays a quarterly dividend and has raised it each year for more than a decade. It is not yet a Dividend Aristocrat. If it splits into several companies, the dividend would be divided between the new businesses, so check current plans.

What to keep an eye on

  • Industrial cycles. Factory and building demand follows the economy.
  • Aerospace demand. Air travel and aircraft production.
  • Break-up plans. Execution and dividend policy after separations.
  • Competition. Siemens, Emerson, GE Aerospace and others.

Quick take

Honeywell is a well-run industrial with a growing dividend that is in the middle of a major reshaping.