Honeywell

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Diversified manufacturer Honeywell ( HON) is another name that looks primed to increase its payout in the next quarter. The firm currently pays out a 37.25-cent quarterly dividend, a 2.58% yield at current price levels. But Honeywell has been slowly building up the cash in its coffers over the past few years. If it wants to earn a meaningful return on that cash in this market, it's going to be best serves sharing some more with its owners.

Honeywell builds everything from aircraft parts to factory control systems to household thermostats, manufacturing exposure that's necessarily cyclical. For that reason (and particularly because of hefty transportation sector exposure), the firm got hit hard during 2008. Like many industrial manufacturers, Honeywell took the recession as an opportunity to shore up its business and improve the drags on its earnings. That puts the firm in good shape to take on any economic headwinds that pick up in 2012.

In the meantime, hefty exposure to the aviation business is finally getting rewarded by increased aircraft orders. Because HON has parts in so many commercial and general aviation planes, it should benefit materially from that increased order volume.

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