Here’s Madison Dividend Income Fund’s Investment Thesis for Honeywell (HON)

1 month ago 14

Soumya Eswaran

Mon, Apr 28, 2025, 5:27 AM 3 min read

Madison Investments, an concern advisor, released its “Madison Dividend Income Fund” first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the archetypal quarter, the money (Class Y) returned +3.2% compared to the -4.3%, +2.1%, and +1.7% returns for the S&P 500 Index, Russell 1000 Value Index, and Lipper Equity Income adjacent group. The steadfast views that since precocious 2022, the displacement from dividend stocks to non-dividend tech stocks has created a unsocial accidental to bargain high-quality dividend stocks astatine below-average valuations. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its first-quarter 2025 capitalist letter, Madison Dividend Income Fund highlighted stocks specified arsenic Honeywell International Inc. (NASDAQ:HON). Honeywell International Inc. (NASDAQ:HON) is an innovation and exertion institution that provides aerospace technologies, concern automation, gathering automation, and vigor and sustainable solutions. The one-month instrumentality of Honeywell International Inc. (NASDAQ:HON) was -5.95%, and its shares gained 2.78% of their worth implicit the past 3 months. On April 25, 2025, Honeywell International Inc. (NASDAQ:HON) banal closed astatine $199.16 per stock with a marketplace capitalization of $129.127 billion.

Madison Dividend Income Fund stated the pursuing regarding Honeywell International Inc. (NASDAQ:HON) successful its Q1 2025 capitalist letter:

"This 4th we privation to highlight Honeywell International Inc. (NASDAQ:HON) arsenic a high-quality comparative output concern successful the Industrial sector. HON is simply a premier concern institution with starring positions successful Aerospace (40% of revenues), Industrial Automation (26%), Building Automation (17%) and Safety and Productivity Solutions (17%). A communal taxable crossed these extremity markets is that HON embeds its products into the operations of its customers, which generates semipermanent recurring gross from aftermarket products/services. We judge HON has a sustainable competitory vantage owed to its scale, precocious lawsuit switching costs, intangible assets, and agelong past of innovation. Many HON products are a debased percent of its customers’ full costs, and these products get designed into products and operations, which supply a semipermanent root of accordant revenue.

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