Honeywell Increased Dividend 5% last week. How many people expect to receive a 5% Merit Increase next year?
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I got a 25% raise. I left and went to a better company with real benefits and treat people like they really are the best asset they have.
I don’t think too many folks will miss the connection, but for the new players at the Honeywell table, Hon managers pray on the GE corporate bible (no offense to formal religion here). What GE did, Hon will do - regardless of any hard data proving doing so is counter productive.
https://money.cnn.com/2018/03/23/investing/ge-share-buybacks-immelt/index.html
“ If only former CEO Jeff Immelt hadn't gone on a $24 billion spending spree in 2016 and 2017 to buy back GE's (GE) stock — at what turned out to be extremely high prices.”
“ GE spent $2.6 billion last year on stock buybacks — at an average price of $19.65. Today, the stock is worth just $13.35, close to a nine-year low.”
“…buybacks were much worse in 2016. It spent $21.4 billion at an average price of $30.30, more than double the current price.”
“A spokesperson for Immelt told CNNMoney that decisions were "always made with the long-term interests of the company in mind."
No one does sh-t with a long-term interest for the company at Hon.
“ Cowen analyst Gautam Khanna summed it up this way: "Poor capital allocation, bad acquisitions, poor share repurchases at higher prices and unsustainably high dividends."
Your overtime at work!
Wait, we can't use the printer because they can't order new toner, we can't write things down because they can't order office supplies, can't fix the roof before it caves in at our plants, we have to stop work on programs before the end of each month so they can show "good" metrics, can't pay vendors on time because they wouldn't replace the person who handles po's, but the dividend goes up? I know what 9 block I'd put our ceo into.
Start to practice how to hold on your ankles tight, boys and girls for what is coming
@dnn - Late stage action. It is a sign that revs are going to be a little weaker and this is the tool used now to keep stock up. It is all good until the cash starts going down. There are always more stock buybacks and div increases closer to tops than bottoms.
Dividends and stock repurchase is the return of cash to shareholders, from PRIOR earnings. They have run out of places to invest and still give shareholders a good return. If I were you as an employee I would be thinking, what have they committed in future Earnings Per Share. If they are saying that bottom line is growing in this environment, they are going to squeeze the employees, supplier, maybe even customers for $$$. Hard to do with external stakeholders, internal (employees) real easy to sc--w over (freeze merit, furlough, Slow back filling positions, etc). All the stuff that r hey consistently do. Prepare to be screwed!!!
@dnn
Only a fool keeps stock in the company they work for.
Stock price crashes are followed by layoffs.
Lol, pay is frozen for next year, no merit. They just haven’t announced it yet, it’s part of the productivity improvement plans. Get more out of the existing work force.
Be thankful that your dividend will increase 5% on the HON stock you own. Increasing dividends are a sign of a healthy company.
Here's an item that may be of interest. In the first half of 2021, HON paid out dividends worth $1,304M to shareholders and repurchased shares worth $1,849M.
The HON stock repurchase activities by far exceed the dividend payouts. These payouts come from the cash reserves. (also known as retained earnings)
https://www.streetinsider.com/Corporate+News/Honeywell+%28HON%29+approves+%2410+billion+buyback/17975569.html
Here's a link to the HON board of directors approving $10B of further stock buybacks in Feb 2021.
The only way to get a 5% increase is to change positions within the company.