10 Best Diversified Dividend Stocks To Buy Now

5. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 55

Honeywell International Inc. (NASDAQ:HON) ranks fifth on our list of the best diversified dividend stocks. The American multinational conglomerate company recently made it to headlines as the company announced that it is moving forward with a breakup after facing ongoing pressure from activist investor Elliott Investment Management, according to Bloomberg’s David Carnevali. The industrial company intends to separate into two independent publicly traded companies, one focused on automation and the other on aerospace and defense. Sources indicate that Honeywell may officially announce the plans alongside its fourth-quarter earnings report, which is set for release in early February.

Before the separation takes place, let’s review the company’s performance in the third quarter of 2024. The company reported revenue of $9.73 billion, which saw a 5.6% growth from the same period last year. Segment profit rose by 6% compared to the previous year, driven by strong performance in Aerospace Technologies and the full-quarter impact of the Access Solutions acquisition. In addition, segment margin remained steady year over year at 23.6%, surpassing the upper end of the company’s guidance range by 30 basis points.

Honeywell International Inc. (NASDAQ:HON) has grabbed investors’ attention due to its strong cash generation. The company generated $2 billion in operating cash flow in the most recent quarter and its free cash flow came in at $1.7 billion, up 10% on a YoY basis.

In September 2024, Honeywell International Inc. (NASDAQ:HON) declared a 4.6% hike in its quarterly dividend to $1.13 per share. This was the company’s 15^th dividend hike in the past 14 years. The stock has a dividend yield of 2.03%, as of January 22.

The number of hedge funds tracked by Insider Monkey owning stakes in Honeywell International Inc. (NASDAQ:HON) grew to 55 in Q3 2024, from 50 in the previous quarter. These stakes have a total value of more than $877 million.