HON vs NDSN: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
HON yields 0.81% more than NDSN. In dollar terms, HON pays $4.58/share vs NDSN's $3.16/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%).
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: 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: The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in HON vs NDSN 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 $298.62 per share, $10,000 buys about 33.5 shares of Nordson Corp (NDSN). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $106 per year — about $9 a month.
HON is the larger income stream from day one: $84 per year more on the same $10,000 invested.
What could $10,000 of HON or NDSN 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.
Nordson Corp (NDSN) has raised its dividend about 21.9% a year over the past five years. If that pace held, the $107 per year that $10,000 generates today at the current 1.07% yield would reach $777 per year by 2036 — a 7.8% yield on the original cost.
On those trailing rates, NDSN pays more in 2036: $777 versus $318 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would NDSN's dividend growth overtake HON's higher yield?
Nordson Corp (NDSN) yields less today (1.07% vs 1.88%) but has grown its dividend faster — 21.9% vs 5.4% a year over the past five years. If both trends continued, a $10,000 position in NDSN would start out-earning the same position in HON around 2030 (roughly 4 years from now), paying about $236 per year at the crossover. Before that point, HON pays more each year; after it, the gap compounds in NDSN's favor.
Can HON and NDSN 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).
Nordson Corp (NDSN) earns $8.50 per share against $3.16 paid out in dividends — 2.7x coverage (a 37% payout ratio).
NDSN's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for HON if earnings weaken.
Which fits an early-retirement income portfolio better, HON or NDSN?
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 $89 a month from Nordson Corp (NDSN) at 1.07%.
With a decade or more before the income is needed, NDSN's faster dividend growth (21.9% vs 5.4% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: HON has raised its dividend 15 consecutive years; NDSN has raised its dividend 1 consecutive year.
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 $864/yr in NDSN 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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