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Diversified technology and manufacturing firm Honeywell ( HON) has its hand in everything from aerospace systems to home thermostats. While 2011 has been anything but a banner year for shareholders (the stock has slid 14% year-to-date), it's important to remember that there's still a major disconnect between many firms' fundamental health and their share prices. Fundamentally, Honeywell has been enjoying some significant improvements in its business.

On a trailing 12-months basis, Honeywell's revenue is a hair's breadth away from its pre-recession highs, and profitability is higher than ever. While many of Honeywell's key, capital-intense businesses were hard hit during the recession, they're springing back with force now that capital is flowing cheaply once again. Aviation sales are on the upswing, as are the fortunes of many of the industrial clients that Honeywell outfits with automation and process control solutions.

Honeywell opted to pay down debt and shore up its financial strength following 2008; the result is a firm that's now much better suited to handle another economic rough patch. It also means that the firm's nearly 3% dividend yield is far more secure than it was just a few years ago. While meaningful growth -- through jet sales and industrial production -- will be predicated on health in the broad economy, Honeywell is looking strong right now.

Honeywell is one of the top-yielding aerospace and defense stocks.

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