Johnson Controls International PLC's Dividend Analysis
Assessing the Upcoming Dividend and Financial Health of Johnson Controls International PLC (NYSE:JCI)
Johnson Controls International PLC (NYSE:JCI) recently announced a dividend of $0.37 per share, payable on 2024-04-19, with the ex-dividend date set for 2024-03-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Johnson Controls International PLC's dividend performance and assess its sustainability.
What Does Johnson Controls International PLC Do?
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Johnson Controls International PLC operates in the building products industry, specializing in the manufacturing, installation, and servicing of HVAC systems, building management systems and controls, industrial refrigeration units, and fire and security solutions. Commercial HVAC accounts for over 45% of sales, fire and security represents roughly 40% of sales, and residential HVAC, industrial refrigeration, and other solutions account for the remaining 15% of revenue. In fiscal 2023, Johnson Controls International PLC generated nearly $27 billion in revenue, showcasing its significant presence in the industry.
A Glimpse at Johnson Controls International PLC's Dividend History
Johnson Controls International PLC has upheld a consistent dividend payment record since 1985, with dividends currently distributed on a quarterly basis. This history reflects the company's commitment to returning value to shareholders and its financial stability over the years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Johnson Controls International PLC's Dividend Yield and Growth
As of today, Johnson Controls International PLC's 12-month trailing dividend yield stands at 2.28%, and the 12-month forward dividend yield is slightly higher at 2.29%, indicating an expectation of modestly increasing dividend payments over the next year. Over the past three years, the company's annual dividend growth rate was 11.70%, which decreased to 7.60% per year over a five-year period, and stood at 4.00% over the past decade. These figures demonstrate a consistent growth in dividends, albeit at a decelerating pace.
Johnson Controls International PLC's 5-year yield on cost is approximately 3.29%, reflecting the increase in the yield a shareholder would have received if they purchased the stock five years ago.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical metric for assessing dividend sustainability. As of December 31, 2023, Johnson Controls International PLC's dividend payout ratio is 0.44, suggesting that the company retains a healthy portion of its earnings for growth and operational flexibility. Additionally, Johnson Controls International PLC's profitability rank is a robust 7 out of 10, indicating good profitability prospects relative to peers. The company has reported net profit in 9 out of the past 10 years, underlining its consistent earnings capability.
Growth Metrics: The Future Outlook
Johnson Controls International PLC's growth rank of 7 out of 10 suggests a favorable growth trajectory when compared to competitors. The company's revenue per share and 3-year revenue growth rate of approximately 9.60% per year outperforms roughly 66.07% of global competitors, indicating a strong revenue model. The 3-year EPS growth rate of about 26.20% per year surpasses roughly 72.38% of global competitors, showcasing the company's ability to grow earnings. Lastly, the 5-year EBITDA growth rate of 20.90% outperforms approximately 79.78% of global competitors, further supporting the sustainability of dividends.
Concluding Thoughts on Johnson Controls International PLC's Dividends
In conclusion, Johnson Controls International PLC's upcoming dividend payout, historical dividend growth, and solid payout ratio reflect a company committed to shareholder returns. Coupled with a strong profitability rank and favorable growth metrics, Johnson Controls International PLC appears well-positioned to maintain its dividend payments. Investors may consider these factors as they evaluate the company's suitability for their portfolios. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover promising stocks.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
