Honeywell International Inc. (HON) has been identified as a potential candidate for a 'Dividend Run' strategy, which posits that a stock's price tends to appreciate in the two weeks leading up to its ex-dividend date. Historical data for HON's last four dividends indicates that purchasing shares two weeks prior to the ex-dividend date and selling the day before yielded aggregate capital gains of $13.73, significantly exceeding the total $4.32 in dividends paid. With HON's next $1.13/share dividend going ex-dividend on November 15, 2024, this pattern suggests a potential short-term trading opportunity for investors employing this specific strategy.
Honeywell International Inc. (HON) has been identified as a candidate for a short-term trading strategy known as a 'Dividend Run,' which hypothesizes that a stock price may appreciate in the period preceding its ex-dividend date. An analysis of HON's last four dividend cycles, based on a strategy of buying ten trading days prior and selling one day prior to the ex-dividend date, shows a mixed but historically positive outcome. This approach yielded a cumulative capital gain of $13.73, substantially exceeding the total dividend distributions of $4.32 over the same period. The strategy proved successful in three of the four instances, with notable gains of $9.76, $3.56, and $6.53. However, the most recent observed cycle resulted in a significant capital loss of $6.12, underscoring the inherent risk and lack of certainty in the pattern. With HON scheduled to go ex-dividend for its upcoming $1.13 per share payment on November 15, 2024, and offering an implied annualized yield of 2.21%, the stock presents a case study for this specific technically-driven trading thesis.
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