Investors continue to seek growth stocks that also offer competitive dividend yields. There are many companies in a secular growth phase that return a large portion of their earnings to their shareholders. The latest bearish market sentiment has created opportunities for discount hunters. I have identified stocks that have long dividend payment histories and trade at a discount from their previous levels.

Honeywell International Inc. (HON): Honeywell, a leader in residential, commercial and industrial controls, is now growing fast in high risk regions like Africa and the Middle East. As per comments by the company at the Oppenheimer Annual Industrial Conference held in September, the company has strong orders and is posting 18% year to date sales growth. In the recent past, the company has launched 450 new products and worked on 100 active repositioning projects.

Moreover, it has also increased its investment in R&D by 90%. Honeywell is a growth company with a history of excellent acquisitions. Its new innovations are driving growth and are expected to boost momentum going forward as well. HON has a CAGR of 13% (’06-’14), with growth in emerging markets.

Trading around $43, HON enjoys a price to earnings ratio of 13.94 times and a dividend yield of 3%. It has a payout ratio of 37%. Moreover, 81.2% of the stock is held by institutions. When compared with BorgWarner Inc. (BWA) and Johnson Controls Inc. (JCI), HON has better gross margins. However, BWA operating margins are almost at par with HON, while JCI lacks behind. To continue reading, click here.