Honeywell International Inc. (HON) - Get Report shares traded higher Friday after the industrial group, and the latest addition to the Dow Jones Industrial Average, said it would boost its regular quarterly dividend.
Honeywell said the annual cash dividend will rise 3.3% to $3.72 per share, with the effective fourth quarter increase amounting to 93 cents per share.
"Honeywell remains focused on providing value to our shareowners despite the current challenging economic environment, and today we announced an increase to our dividend for the 11th consecutive year," said CEO Darius Adamczyk. "Our strong financial position, continued investments for growth, and effective cost management strategies will enable us to continue to perform for our shareowners, customers and employees."
Honeywell shares were marked 0.8% higher in late morning trading Friday to change hands at $160.00 each, a move that extends their six-month gain to around 23%.
Honeywell posted stronger-than-expected second quarter earnings of $1.26 per share on sales of $7.477 billion in late July, but noted a significant slump in aerospace sales linked to Boeing's (BA) - Get Report 737 MAX delays and weak demand for commercial aircraft.
Aerospace sales slumped 27.5% to $2.54 billion, Honeywell said, due to lower commercial aircraft demand amid the peak of travel restrictions during the coronavirus pandemic and the broader impact of the delayed return to service of Boeing Co.'s BA 737 MAX.
The group added that third quarter aerospace sales are likely to fall by 25% when compared to last year. The group is expected to publish its third quarter earnings on October 15.
Honeywell was added to the Dow in late July amid a major shake-up for the staid Average which saw exits for traditional bluechips ExxonMobil Corp. (XOM) - Get Report, Pfizer Inc. (PFE) - Get Report and Raytheon Co. (RTN) - Get Report.