HON vs PNR: Dividend Yield, Growth & Safety Comparison
Honeywell International Inc (HON) and PENTAIR plc (PNR) are both in the Industrials sector, making them natural rivals for dividend investors. HON edges ahead on yield at 1.88% versus PNR's 1.01%. For dividend growth, PNR leads with a 5-year CAGR of 13.6% versus HON's 5.4%. PNR 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 | PNR |
|---|
| Dividend Yield | 1.88% | 1.01% |
| Annual Dividend | $4.58 | $1.00 |
| 5-Year CAGR | 5.4% | 13.6% |
| Payout Ratio | 61% | 25% |
| Consecutive Years | 15 | 0 |
| Price | $241.59 | $101.30 |
Yield Comparison
Honeywell International Inc (HON) currently yields 1.88%, which is modest for the broader market. That's 0.87% more than PENTAIR plc (PNR), which yields 1.01%. In dollar terms, HON pays $4.58/share annually versus PNR's $1.00/share.
Dividend Growth
Over the past five years, PNR has grown its dividend at a 13.6% 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%). PNR: Dividend growth is accelerating — the 3-year CAGR of 23.1% exceeds the 5-year rate of 13.6% and the 10-year rate of 4.4%.
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. PNR's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x. PNR's payout ratio of 25% 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 $101/year from PNR — a difference of $87/year. At $100,000, that gap widens to $870/year.
Verdict
- Best for income: HON
- Best for growth: PNR
- Best for safety: PNR
Frequently Asked Questions
Which has a higher dividend yield, HON or PNR?
Honeywell International Inc (HON) has a higher dividend yield of 1.88% compared to PENTAIR plc (PNR) at 1.01%.
Is HON or PNR a better dividend growth stock?
PENTAIR plc has the stronger dividend growth with a 5-year CAGR of 13.6%, compared to Honeywell International Inc's 5.4%.
Which is safer for dividend income, HON or PNR?
Honeywell International Inc's dividend safety is rated "Moderate" while PENTAIR plc 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 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x.
How much income does $10,000 in HON vs PNR generate?
A $10,000 investment in HON generates approximately $188/year in dividends, while the same amount in PNR generates about $101/year.
Is HON or PNR a Dividend Aristocrat?
Honeywell International Inc is a Dividend Contender with 15 consecutive years of increases. PENTAIR plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, HON or PNR?
PENTAIR plc has a lower payout ratio of 25% compared to Honeywell International Inc's 61%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HON vs PNR: which is better for retirement income?
It depends on your priorities. HON for current income, PNR for dividend growth, PNR for safety. Many retirement investors hold both for diversification.
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