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2 Days Left To Johnson Controls International plc (NYSE:JCI)’s Ex-Dividend Date, Should You Buy?

Important news for shareholders and potential investors in Johnson Controls International plc (NYSE:JCI): The dividend payment of $0.26 per share will be distributed into shareholder on 13 July 2018, and the stock will begin trading ex-dividend at an earlier date, 22 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Johnson Controls International’s latest financial data to analyse its dividend characteristics. See our latest analysis for Johnson Controls International

5 checks you should do on a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

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  • Is it paying an annual yield above 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has it increased its dividend per share amount over the past?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Will it be able to continue to payout at the current rate in the future?

NYSE:JCI Historical Dividend Yield Jun 19th 18
NYSE:JCI Historical Dividend Yield Jun 19th 18

How well does Johnson Controls International fit our criteria?

Johnson Controls International has a trailing twelve-month payout ratio of 45.18%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 36.80%, leading to a dividend yield of 3.25%. However, EPS should increase to $2.69, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although JCI’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, Johnson Controls International generates a yield of 2.97%, which is high for Building stocks but still below the market’s top dividend payers.

Next Steps:

With this in mind, I definitely rank Johnson Controls International as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three essential factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for JCI’s future growth? Take a look at our free research report of analyst consensus for JCI’s outlook.

  2. Valuation: What is JCI worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether JCI is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.