Honeywell Stock History and Valuation

Direct Answer

Honeywell International Inc. (HON) was formed through the merger of AlliedSignal and Honeywell Inc. in 1999 and trades on NASDAQ after transferring its listing from the New York Stock Exchange in June 2019. Honeywell has not split its stock since at least the late 1990s; its share price of approximately $200 at the end of 2024 reflects no recent splits. Honeywell was added to the Dow Jones Industrial Average on February 27, 2004, replacing Eastman Kodak. The company has increased its dividend for more than 14 consecutive years through FY2024, placing it on a path toward Dividend Aristocrat status, though it had not yet reached the 25-year threshold required for that designation. FY2024 adjusted earnings per share were approximately $10.10, and the company's market capitalization was approximately $134 billion at year-end.

Listing history: NYSE to NASDAQ

The modern Honeywell International was created in December 1999 when AlliedSignal completed its merger with Honeywell Inc. and adopted the Honeywell name. The combined company initially traded on the New York Stock Exchange under the ticker HON, the same symbol the original Honeywell Inc. had used before the merger.

In June 2019, Honeywell transferred its primary listing to the NASDAQ Stock Market, continuing to trade under the ticker HON. The move was part of a broader trend among large-cap companies exploring alternative listing venues. Honeywell's index memberships, including positions in the Dow Jones Industrial Average and the S&P 500, were unaffected by the exchange transfer. NASDAQ and NYSE are both regulated national securities exchanges, and the practical trading experience for investors remained essentially unchanged.

Stock split history

Honeywell has not executed a stock split since at least the late 1990s, before the modern company was created through the AlliedSignal and Honeywell merger. The share price of approximately $200 in 2024 reflects years of price appreciation with no dilution from forward splits. Honeywell has not announced plans for a split.

The absence of a split is consistent with a management style that has historically prioritized capital discipline and portfolio restructuring over share-price optics. Honeywell spun off Resideo Technologies (home and commercial building controls) and Garrett Motion (automotive turbochargers) in late 2018, distributing value to shareholders through spinoffs rather than buybacks or stock mechanics like splits. The October 2024 announcement of a planned spinoff of the Automation segment follows the same logic: restructuring the portfolio to surface value, not adjusting the share price for accessibility purposes.

Key price history milestones

Honeywell's stock price over the two decades following the AlliedSignal merger reflects a dramatic transformation. CEO David Cote, who joined in 2002, rebuilt the company from a struggling post-merger entity into a diversified industrial powerhouse, producing one of the longest sustained bull runs in large-cap industrial history.

One structural event that can confuse price comparisons is the 2018 spinoff activity. Honeywell distributed shares of Resideo and Garrett directly to shareholders on a per-HON-share basis, which reduced Honeywell's own stock price on the ex-distribution dates to reflect the value transferred. Analysts and data providers that do not account for these distributions may show an apparent price decline in late 2018 that does not represent a real loss for a holder of record.

Dow Jones Industrial Average membership

Honeywell was added to the Dow Jones Industrial Average on February 27, 2004, replacing Eastman Kodak. Kodak had been a Dow component since 1930 but was removed as its core film business was disrupted by the rise of digital cameras. Honeywell's inclusion reflected S&P Dow Jones Indices' view that a diversified industrial technology company better represented the contemporary U.S. economy than a photographic film manufacturer in structural decline.

Honeywell has been a continuous DJIA component since February 2004. As a price-weighted index, the Dow gives greater influence to higher-priced stocks. Honeywell's share price in the $200 range gives it a meaningful index weight, though it is not the highest-priced component. Day-to-day price movements in HON therefore have a proportional effect on the Dow's headline level, more so than lower-priced components regardless of their market capitalization.

Dividend history

Honeywell has increased its dividend for more than 14 consecutive years through FY2024. This places it in a category of dividend growers approaching Aristocrat status, but it had not yet reached the 25 consecutive years of increases required to qualify for the S&P 500 Dividend Aristocrats index. The company has never suspended or cut its dividend during the modern post-merger era.

The FY2024 quarterly dividend was $1.13 per share, equating to $4.52 annualized. At a share price of approximately $205 at year-end 2024, the dividend yield was approximately 2.2%. This is a meaningful income contribution for a company whose total return has historically been driven more by earnings growth and share price appreciation than by yield alone.

The gap between Honeywell's current streak and the Dividend Aristocrat threshold is worth tracking for income-focused investors. If Honeywell continues raising its dividend each year, it would reach the 25-year threshold in the early 2030s. Whether the planned Automation spinoff in 2025 or 2026 interrupts the raise cadence is a key variable to monitor: spinoffs can sometimes affect a parent's near-term free cash flow and capital allocation priorities.

Valuation framework

Honeywell's valuation is more nuanced than a single P/E multiple because of the structural difference between GAAP earnings and adjusted earnings, and because the planned Automation spinoff introduces a sum-of-parts lens that the market had not previously applied to the company.

GAAP versus adjusted earnings

Honeywell's FY2024 GAAP earnings per share were approximately $6.90, producing a GAAP P/E of approximately 30x at a $205 share price. The adjusted EPS, which excludes restructuring charges, acquisition costs, and pension headwinds, was approximately $10.10, producing an adjusted P/E of approximately 20x. The gap is large enough that an investor must be clear about which metric they are comparing. Peers and industrial benchmarks are typically quoted on an adjusted basis, so the 20x adjusted multiple is the more relevant comparison for competitive positioning. The 30x GAAP multiple is relevant for understanding what investors are actually paying per dollar of reported earnings.

EV/EBITDA

At approximately 17x EV/EBITDA for FY2024, Honeywell trades at a premium to general industrial conglomerates but below pure-play aerospace technology companies, which can command 25x or more. This spread is precisely what drives the sum-of-parts thesis surrounding the Automation spinoff.

Sum-of-parts thesis

The October 2024 announcement of the planned Automation spinoff reflects a view that the combined company trades at a conglomerate discount. Aerospace technology businesses, when valued as pure-play entities, typically earn higher multiples than diversified industrials because their revenue streams are more predictable, their growth is more secular, and the pool of dedicated aerospace investors is willing to pay for clarity. If the Automation separation proceeds and the remaining Aerospace business is re-rated as a pure-play, the sum of the two entities could exceed the current combined market capitalization. The market is watching execution carefully: the timeline, the capital structure of each entity, and whether the Aerospace segment's organic growth rate accelerates as management attention becomes more focused.

Peer comparison

Direct peers for Honeywell include diversified industrials such as 3M, Emerson Electric, and Parker Hannifin, as well as pure-play aerospace and defense companies like RTX Corporation and General Electric Aerospace (post-GE breakup). Relative valuation between Honeywell and these peers often turns on segment mix, margin trajectory, capital allocation track record, and the degree to which a given company has already executed or announced a portfolio restructuring. Honeywell's current restructuring announcement puts it in a transitional phase where historical multiples are less predictive of future multiples than they would be for a stable-structure business.

Frequently Asked Questions

More on Honeywell International Inc.

• Honeywell International Inc. (HON) company overview

References

• Honeywell International Inc. Investor Relations
• SEC EDGAR: Honeywell International Inc. Form 10-K Filings (CIK 0000773840)