Investing isn't easy. Even Warren Buffett counsels that most investors should invest in a low-cost index like the S&P 500. That way, "you'll be buying into a wonderful industry, which in effect is all of American industry," he says.

But there are, of course, companies whose long-term fortunes differ substantially from the index. In this series, we look at how individual stocks have performed against the broad S&P 500.

Step on up, Honeywell (NYSE: HON).

Honeywell shares have roughly matched the S&P 500 over the last quarter-century:

Source: S&P Capital IQ.

Since 1987, shares have returned an average of 9.9% a year, compared with 9.7% a year for the S&P (both include dividends). One thousand dollars invested in the S&P in 1987 would be worth $19,200 today. In Honeywell, it'd be worth $20,500.

Dividends accounted for a lot of those gains. Compounded since 1987, dividends have made up about half of Honeywell's total returns. For the S&P, dividends account for 39% of total returns.

Now have a look at how Honeywell earnings compare with S&P 500 earnings:

Source: S&P Capital IQ.

Some underperformance here. Since 1995, earnings per share have grown by an average of 3.7% a year, compared with 6% annual growth for the broader index.

What's that meant for valuations? Honeywell has traded for an average of 22 times earnings since 1987 -- a bit below the 24 times earnings average of the S&P 500.

Through it all, shares have been average performers over the last quarter-century.  

Of course, the important question is whether that will continue. That's where you come in. Our CAPS community currently ranks Honeywell with a five-star rating (out of five). Do you disagree? Leave your thoughts in the comment section below, or add Honeywell to My Watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.