Honeywell's transformation is a buying opportunity for patient investors.

With just 30 components, the Dow Jones Industrial Average isn't as representative of the broader market as the S&P 500 or Nasdaq Composite . But it's still an excellent resource for finding high-quality, industry-leading companies, many of which pay dividends.

After nearly making an all-time high in July, Dow Jones component Honeywell International ( HON -0.19% ) is down 9.8% in the past month. The sell-off may come as a surprise, given that Honeywell delivered a great quarter, raised its guidance, and is producing high operating margins across its business segments.

Here's why the dividend stock is a great buy in August.

Honeywell's conglomerate days are rightfully coming to a close

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