Honeywell (NYSE:HON) produced some very nice earnings. Not a flashy stock with a lot if noise it treated as an old school industrial. However looking at its markets of transportation and aeronautics it really is a high-tech business with large moats. not everyone can just start installing parts onto an aircraft carrying hundreds of passengers.
The proof or validation for the earning will be an increase in dividend. When you are firing on all cylinders as Honeywell is shareholders need to be rewarded. Current yield is just under 2%. Free cash flow for the past two years has not been stellar. But cash on hand has been rising.
If management and the board are shareholder conscious they will increase the dividend and play to the buy and hold investors. so far no signals from management. Why is that?
George Gutowski writes from a caveat emptor perspective.