5 Best S&P 500 Dividend Stocks to Buy Right Now

4. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 75

On June 11, Reuters reported that Honeywell International Inc. (NASDAQ:HON) is targeting acquisitions valued between $2 billion and $4 billion and sees significant opportunities for deals within its industrial automation business.

“There is a ton of opportunity for M&A,” Peter Lau, president of Honeywell’s Industrial Automation unit, said during the company’s investor day in New York. He added that the business operates in a market worth roughly $35 billion. At the broader company level, Honeywell indicated that it plans to focus on bolt-on acquisitions within its preferred $2 billion to $4 billion range. This marks a narrower focus compared with its previous preferred deal size range of $1 billion to $7 billion.

Over the past several years, Honeywell has spent about $14 billion on roughly 10 acquisitions, primarily concentrating on bolt-on deals valued between $1 billion and $2 billion. The company has also combined those acquisitions with divestitures and planned spinoffs as part of an effort to simplify its business structure.

When asked whether larger acquisitions remain an option, Chief Executive Vimal Kapur told investors that, while circumstances can change, the company does not currently “see any necessity to go away from our fundamental strategy.”

Honeywell International Inc. (NASDAQ:HON) is an integrated operating company serving a wide range of industries and geographic markets. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform.