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Johnson Controls (JCI) Cheers Investors With 2.8% Dividend Hike
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In a shareholder-friendly move, Johnson Controls International (JCI - Free Report) hiked its quarterly dividend by 2.8% to 37 cents per share (annually: $1.48). This marks the company’s second dividend hike this year. The move underscores its sound financial health as it utilizes free cash flow to enhance shareholders’ returns.
The new dividend will be paid to shareholders on Jul 14, of record as of Jun 20. The dividend yield, based on the new payout and its Jun 7 closing price, is 2.3%.
In March, Johnson Controls hiked its dividend by 2.9% to 36 cents per share. In the first six months of fiscal 2023, the company returned more than $700 million to shareholders through a combination of dividends (nearly $500 million) and share buybacks (roughly $250 million).
Successive dividend hikes this year highlight the strength across JCI’s operations. The company is benefiting from a robust demand environment and pricing actions. Cost-control initiatives are helping the company generate substantial productivity savings.
Adjusted segment EBITA margin expanded 120 basis points (bps) year over year in the second quarter of fiscal 2023, thanks to productivity savings of $75 million. For fiscal 2023, JCI expects to achieve productivity savings of $340 million. With this, the company expects adjusted segment EBITA margin to improve 100-120 bps year over year in fiscal 2023.
Zacks Rank & Key Picks
Johnson Controls presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Flowserve has an estimated earnings growth rate of 64.5% for the current year. Shares of the company have gained 16.6% in a year.
Graco (GGG - Free Report) presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 7.9%, on average.
Graco has an estimated earnings growth rate of 16.4% for the current year. Shares of the company have rallied 30.2% in a year.
Ingersoll Rand (IR - Free Report) currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 12.6%, on average.
Ingersoll Rand has an estimated earnings growth rate of 14.8% for the current year. Shares of the company have jumped 24.7% in a year.
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Johnson Controls (JCI) Cheers Investors With 2.8% Dividend Hike
In a shareholder-friendly move, Johnson Controls International (JCI - Free Report) hiked its quarterly dividend by 2.8% to 37 cents per share (annually: $1.48). This marks the company’s second dividend hike this year. The move underscores its sound financial health as it utilizes free cash flow to enhance shareholders’ returns.
The new dividend will be paid to shareholders on Jul 14, of record as of Jun 20. The dividend yield, based on the new payout and its Jun 7 closing price, is 2.3%.
In March, Johnson Controls hiked its dividend by 2.9% to 36 cents per share. In the first six months of fiscal 2023, the company returned more than $700 million to shareholders through a combination of dividends (nearly $500 million) and share buybacks (roughly $250 million).
Johnson Controls International plc Price
Johnson Controls International plc price | Johnson Controls International plc Quote
Successive dividend hikes this year highlight the strength across JCI’s operations. The company is benefiting from a robust demand environment and pricing actions. Cost-control initiatives are helping the company generate substantial productivity savings.
Adjusted segment EBITA margin expanded 120 basis points (bps) year over year in the second quarter of fiscal 2023, thanks to productivity savings of $75 million. For fiscal 2023, JCI expects to achieve productivity savings of $340 million. With this, the company expects adjusted segment EBITA margin to improve 100-120 bps year over year in fiscal 2023.
Zacks Rank & Key Picks
Johnson Controls presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Flowserve (FLS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 2.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flowserve has an estimated earnings growth rate of 64.5% for the current year. Shares of the company have gained 16.6% in a year.
Graco (GGG - Free Report) presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 7.9%, on average.
Graco has an estimated earnings growth rate of 16.4% for the current year. Shares of the company have rallied 30.2% in a year.
Ingersoll Rand (IR - Free Report) currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 12.6%, on average.
Ingersoll Rand has an estimated earnings growth rate of 14.8% for the current year. Shares of the company have jumped 24.7% in a year.