Investment advisor Madison Investments issued its "Madison Dividend Income Fund" Investor's Letter for the First Quarter of 2025. A copy of the letter can be downloaded here. In the first quarter, the fund (Y grade) returned +3.2%, while the S&P 500, Russell 1000 Value Index and Lipper Equity Inover Peer Group had a return of -4.3%, +2.1% and +1.7%. The company believes that the transition from dividend stocks to non-vibrant technology stocks has created a unique opportunity to buy high-quality dividend stocks at lower-average valuations since the end of 2022. Also, check the fund’s top five holdings to see its best options for 2025.
The Madison Dividend Income Fund highlighted stocks in its first-quarter 2025 investor letter, such as Honeywell International (NASDAQ:HON). Honeywell International Inc. (NASDAQ:HON) is an innovative technology company that provides aviation technology, industrial automation, building automation, and energy and sustainable solutions. Honeywell International Inc. (NASDAQ:HON) has a one-month return of -5.95%, and its share price has risen by 2.78% of its value over the past 52 weeks. On April 25, 2025, Honeywell International Inc. (NASDAQ:HON) closed at $199.16 with a market value of $129.1127 billion.
The Madison Dividend Income Fund pointed out the following about Honeywell International (NASDAQ: hon) in its 2025 investor letter in its Q1 Investor Letter:
“We want to highlight this quarter Honeywell International (NASDAQ: HON) is a high-quality relative income investment in the industrial sector. HON is a major industrial company in aerospace (40% of revenue), industrial automation (26%), building automation (17%), and safety and productivity solutions (17%). A common theme for these final markets is embedding their products into the operations of their customers, which generates long-term recurring revenue from after-sales products/services. We believe that HON has a sustainable competitive advantage due to its scale, high customer conversion costs, intangible assets and a long history of innovation. Many HON products have a low percentage of their total costs and these products are designed to be products and operations that provide a consistent source of revenue.
Lens with a business plane with blurred color in the background represent the generation of auxiliary power units in the safety and productivity solutions segment.
Honeywell International (NASDAQ:HON) is not among the 30 most popular stocks in hedge funds. According to our database, at the end of the fourth quarter, 67 hedge fund portfolio held Honeywell International (NASDAQ: HON), compared with 55 in the third quarter. While we acknowledge the potential of Honeywell International (NASDAQ:HON) as an investment, our belief is that AI stocks have greater hope to deliver higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but have less than 5 times its earnings, check out our report Cheapest AI stocks.
In another post, we introduce Honeywell International Inc. (NASDAQ:HON) and share a list of the best edge computing stocks purchased based on hedge funds.
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Disclosure: None. This article was originally published in Insider Monkey.