HON vs NDSN: Dividend Yield, Growth & Safety Comparison
Honeywell International Inc (HON) and Nordson Corp (NDSN) are both in the Industrials sector, making them natural rivals for dividend investors. HON edges ahead on yield at 1.88% versus NDSN's 1.07%. For dividend growth, NDSN leads with a 5-year CAGR of 21.9% versus HON's 5.4%. NDSN holds the edge in dividend safety with a "Safe" rating. HON is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | HON | NDSN |
|---|
| Dividend Yield | 1.88% | 1.07% |
| Annual Dividend | $4.58 | $3.16 |
| 5-Year CAGR | 5.4% | 21.9% |
| Payout Ratio | 61% | 37% |
| Consecutive Years | 15 | 1 |
| Price | $241.59 | $298.62 |
Yield Comparison
Honeywell International Inc (HON) currently yields 1.88%, which is modest for the broader market. That's 0.81% more than Nordson Corp (NDSN), which yields 1.07%. In dollar terms, HON pays $4.58/share annually versus NDSN's $3.16/share.
Dividend Growth
Over the past five years, NDSN has grown its dividend at a 21.9% CAGR compared to HON's 5.4%. 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%). NDSN: Dividend growth has been steady, with a 3-year CAGR of 22.3% and a 5-year CAGR of 21.9% (10-year: 16.3%).
Dividend Safety
HON's dividend safety is rated "Moderate." 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. NDSN's dividend safety is rated "Safe." The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. NDSN's payout ratio of 37% is more conservative than HON's 61%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in HON generates approximately $188/year in dividend income, compared to $107/year from NDSN — a difference of $81/year. At $100,000, that gap widens to $810/year.
Verdict
- Best for income: HON
- Best for growth: NDSN
- Best for safety: NDSN
Frequently Asked Questions
Which has a higher dividend yield, HON or NDSN?
Honeywell International Inc (HON) has a higher dividend yield of 1.88% compared to Nordson Corp (NDSN) at 1.07%.
Is HON or NDSN a better dividend growth stock?
Nordson Corp has the stronger dividend growth with a 5-year CAGR of 21.9%, compared to Honeywell International Inc's 5.4%.
Which is safer for dividend income, HON or NDSN?
Honeywell International Inc's dividend safety is rated "Moderate" while Nordson Corp is rated "Safe." 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. The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
How much income does $10,000 in HON vs NDSN generate?
A $10,000 investment in HON generates approximately $188/year in dividends, while the same amount in NDSN generates about $107/year.
Is HON or NDSN a Dividend Aristocrat?
Honeywell International Inc is a Dividend Contender with 15 consecutive years of increases. Nordson Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, HON or NDSN?
Nordson Corp has a lower payout ratio of 37% compared to Honeywell International Inc's 61%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HON vs NDSN: which is better for retirement income?
It depends on your priorities. HON for current income, NDSN for dividend growth, NDSN for safety. Many retirement investors hold both for diversification.
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