12 Best Income Stocks to Buy Now

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3. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 76

Dividend Yield as of December 28: 2.41%

Honeywell International Inc. (NASDAQ:HON) is among the best dividend stocks to invest in.

On December 24, Barclays analyst Julian Mitchell lowered the firm’s price target on Honeywell International Inc. (NASDAQ:HON) to $250 from $269 and kept an Overweight rating on the shares. The update followed the company’s fiscal fourth-quarter report and a refresh of the firm’s model. Mitchell said investor interest could improve in the spring of 2026 as the company approaches its capital markets day and prepares for the planned aerospace spinoff.

A few days earlier, on December 22, Honeywell International Inc. (NASDAQ:HON) released supplemental 2024 and year-to-date 2025 financial information. The update reflects a revised business segment structure that is expected to take effect in the first quarter of 2026, following changes the company first outlined in October.

The company also said it will begin reporting its Advanced Materials business as discontinued operations starting in the fourth quarter of 2025. This follows the successful spin of Solstice Advanced Materials on October 30. As a result, Honeywell adjusted its full-year and fourth-quarter 2025 guidance, while reaffirming its expectations for fourth-quarter performance.

Honeywell International Inc. (NASDAQ:HON) also provided an update on previously disclosed litigation tied to Flexjet. The company expects a one-time charge in the fourth quarter related to these matters. The charge will not affect non-GAAP results or guidance. Any potential settlements are expected to include one-time cash payments totaling about $470 million in aggregate.

Honeywell operates as an integrated company serving customers across a wide range of industries and regions. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge digital platform.

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