Evaluating Shares in Honeywell International (HON)
What is the current annual dividend per share offered by Honeywell International (HON)?
a) $4.00
b) $3.50
c) $5.00
What is the expected annual growth rate of the dividend per share for HON?
a) 3%
b) 5%
c) 7%
If the discount rate is set at 10%, what is the value of HON shares (to two decimal places)?
a) $88.00
b) $84.00
c) $90.00
Current Annual Dividend Per Share by Honeywell International (HON)
The current annual dividend per share offered by Honeywell International (HON) is $4.00.
Expected Annual Growth Rate of Dividend Per Share for HON
The expected annual growth rate of the dividend per share for HON is 5%.
Value of HON Shares
The value of HON shares, using a discount rate of 10%, is $84.00.
Honeywell International (HON) currently pays an annual dividend of $4.00 per share. This means that for every share of HON stock that an investor owns, they will receive $4.00 in dividend payments for that year.
Furthermore, Honeywell International expects to increase this dividend by 5% every year in the future. This indicates a consistent growth in the dividend payments over time, making the stock potentially more attractive to investors looking for income.
When evaluating the value of HON shares, it is important to consider the discount rate, which is set at 10% in this case. By using the formula to calculate the value of HON shares, taking into account the expected dividend growth rate and the discount rate, we arrive at a value of $84.00 per share.
Investors interested in HON shares should take into account both the current dividend payment and the expected growth rate to assess the potential value and income generation of the stock in their investment portfolio.