HON vs MMM: Dividend Comparison
Dividend data as of
Honeywell International Inc (HON) and 3M Co (MMM) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — HON at 1.88% and MMM at 1.79%. For dividend growth, HON leads with a 5-year CAGR of 5.4% versus MMM's -5.8%. MMM holds the edge in dividend safety with a "Safe" rating. HON is a Dividend Contender with 15 years of consecutive increases.
Verdict
Yield Analysis
HON yields 0.09% more than MMM. In dollar terms, HON pays $4.58/share vs MMM's $3.12/share annually.
Dividend Growth
HON: Dividend growth has been steady, with a 3-year CAGR of 5.6% and a 5-year CAGR of 5.4% (10-year: 7.9%).
MMM: Dividend growth is slowing — the 3-year CAGR of -23.7% trails the 5-year rate of -5.8% and the 10-year rate of 0.5%.
Dividend Safety
HON: The payout ratio of 61% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x.
MMM: The payout ratio of 49% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in HON vs MMM today?
At $241.59 per share, $10,000 buys about 41.4 shares of Honeywell International Inc (HON). Each share pays $4.58 per year in dividends, so the position starts out generating roughly $190 per year — about $16 a month.
At $171.81 per share, $10,000 buys about 58.2 shares of 3M Co (MMM). Each share pays $3.12 per year in dividends, so the position starts out generating roughly $182 per year — about $15 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of HON or MMM income look like in 10 years?
Honeywell International Inc (HON) has raised its dividend about 5.4% a year over the past five years. If that pace held, the $188 per year that $10,000 generates today at the current 1.88% yield would reach $318 per year by 2036 — a 3.2% yield on the original cost.
3M Co (MMM)'s dividend has shrunk about 5.8% a year over the past five years. If that trend continued, today's $179 per year on $10,000 (at the current 1.79% yield) would fall to $98 per year by 2036.
On those trailing rates, HON pays more in 2036: $318 versus $98 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would MMM's dividend growth overtake HON's higher yield?
It doesn't, on the trailing numbers. Honeywell International Inc (HON) yields more today (1.88% vs 1.79%) and has also grown its dividend at least as fast (5.4% vs -5.8% a year over five years). Unless MMM accelerates its raises or HON stumbles, MMM never closes the income gap — HON wins on both current income and growth.
Can HON and MMM afford their dividends?
Honeywell International Inc (HON) earns $7.58 per share against $4.58 paid out in dividends — 1.7x coverage (a 61% payout ratio).
3M Co (MMM) earns $6.01 per share against $3.12 paid out in dividends — 1.9x coverage (a 49% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, HON or MMM?
For income you need right now, Honeywell International Inc (HON) leads: $100,000 invested today pays about $157 a month at the current 1.88% yield, versus $149 a month from 3M Co (MMM) at 1.79%.
HON also leads on dividend growth (5.4% vs -5.8% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: HON has raised its dividend 15 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $384/yr in HON vs $117/yr in MMM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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