By Don — 16 Apr 2025

Honeywell: The Company That Quietly Makes the Future Work

Posted on HilarioCo.com | Dividends & Data Centers Series

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This is part of Dividends & Data Centers—a series where I break down how time-tested dividend-paying companies may be quietly powering the future of technology, health, and infrastructure.

No stock tips. Just structured thinking and clarity for the long haul.

Read the intro →

What Honeywell Actually Does (In Plain English)

Honeywell makes the systems that keep the real world running—things like building controls, airplane parts, warehouse sensors, and safety equipment for factories.

They don’t build apps. They build infrastructure—the kind you can feel, touch, and rely on.

If you’ve ever walked into a modern office building and the air felt perfect…

If you’ve flown on a plane that landed smoothly in rough weather…

If a warehouse moved hundreds of boxes per minute without chaos—

Honeywell was probably involved.

They make money by helping buildings save energy, helping airplanes fly safer, and helping companies run smarter.

And they’ve been doing it for decades—steadily, profitably, and mostly in the background.

Honeywell doesn’t chase headlines. It builds what the noise runs on.

While investors argue over who’s got the smartest AI, Honeywell is wiring the buildings where that intelligence actually lives.

This company makes the systems that control our air quality, energy usage, warehouses, factories—even the airplanes we fly on. And now, it’s adding artificial intelligence to all of it.

Here’s why that matters.

Why Honeywell Still Earns a Spot in the Portfolio

When I look at a company, I ask two things:

Does it have a place in where the world is going?
And if the future doesn’t go exactly as planned, does it still deserve to stay?

With Honeywell, the answer to both is yes.

How It Helps Shape the Future

In late 2024, Honeywell teamed up with Google Cloud to bring powerful AI tools into its core business.

That means:

AI that helps big buildings save energy
AI that helps factories avoid breakdowns
AI that helps warehouses move more efficiently

This isn’t theoretical—it’s real-world use, already happening.

And because Honeywell already has deep roots in these industries, it’s not trying to break in—it’s already there.

If AI Went Away, Honeywell Still Works

Let’s say the AI wave crashes.

Would Honeywell still be worth owning?

Yes. And here’s why:

It earns steady income
It pays a dividend that’s grown over time
It builds the kind of systems people and businesses will always need
It’s careful with cash and doesn’t chase risky bets

Even through COVID and other downturns, it stayed steady.

That kind of durability matters more than hype.

What Would Have to Go Wrong

This is always the grounding question:

What would have to change for Honeywell to no longer belong in a long-term portfolio:

If its core business lost relevance—for example, if smart building tech or industrial controls were suddenly replaced by a faster, cheaper alternative
If its use of AI stayed shallow—and competitors in energy, logistics, or aerospace pulled ahead with smarter, leaner platforms
If it stopped growing free cash flow or began borrowing just to fund dividends or buybacks
If its margins shrank year after year, with no real explanation other than “costs are rising”
If it froze its dividend or fell behind on returns, while others in its category continued to grow responsibly

Right now? It’s still earning its seat.

Why I Wrote This

I manage portfolios for people who want to grow wealth without having to flinch every time headlines scream change.

Honeywell is the kind of company that gives me peace in that process.

It’s not a flashy stock.

But it’s a business that quietly powers the world we live in—and adapts when needed.

That’s what I look for.

That’s what I hold onto.

Sources:

Disclaimer: This post is for information only. It’s not advice. I’m not telling you to buy or sell anything. Just sharing how I think about the companies I watch closely. Investing has risks—do your homework.

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