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Johnson Controls Rewards Shareholders With 8% Dividend Hike

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Key Takeaways

  • JCI raised its quarterly dividend 8% to 40 cents, offering a 1.4% yield at Sept. 10 close.
  • In nine months of fiscal 2025, JCI generated $1.28B free cash flow and paid $733M dividends.
  • JCI authorized a $9B buyback in June 2025, with $9.8B capacity remaining at fiscal Q3-end.

In a shareholder-friendly move, Johnson Controls International plc (JCI - Free Report) has announced a hike in its dividend payout. The company increased its quarterly dividend by 8% to 40 cents per share (annually: $1.60). The move underscores JCI’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns.

The new dividend will be paid out on Oct. 17, 2025, to shareholders of record as of Sept. 22. The company’s dividend yield, based on its Sept. 10 closing price, is approximately 1.4%.

Strong cash flow generation capacity supports Johnson Controls’ shareholder-friendly activities. For instance, in the first nine months of fiscal 2025 (ended June 2025), the company generated a free cash flow of $1.28 billion.

JCI’s Shareholder-Friendly Moves

In the first nine months of fiscal 2025, Johnson Controls paid a dividend worth $733 million to its shareholders. The company also repurchased shares worth $970 million in the same period. Also, in fiscal 2024 (ended September 2025), Johnson Controls returned $2.2 billion to shareholders through a combination of dividends ($1 billion) and share repurchases ($1.2 billion).

Apart from this, in June 2025, JCI announced a new $9 billion share repurchase program. This was in addition to the $1.1 billion that was available under its 2021 authorization as of the end of the second quarter of fiscal 2025 (ended March 2025). At the end of third-quarter fiscal 2025 (ended June 2025), the company had $9.8 billion remaining under this program.

Zacks Rank & Price Performance

Johnson Controls, with a $70.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is gaining from solid momentum in the Americas unit, supported by an increase in demand for the HVAC platform and strength in controls businesses. Investments in digital offerings, like the OpenBlue platform, are benefiting JCI.

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Year to date, the company’s shares have gained 36.6% compared with the industry’s growth of 10.4%.

However, escalating operating expenses due to higher transformation costs and transaction costs are likely to dent its bottom line. Also, high debt levels can raise the company’s financial obligations.

Stocks to Consider

Some better-ranked stocks from the same space are discussed below.

Comfort Systems USA, Inc. (FIX - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comfort Systems delivered a trailing four-quarter average earnings surprise of 22.4%. In the past 60 days, the Zacks Consensus Estimate for FIX’s 2025 earnings has increased 10.8%.

Lennox International Inc. (LII - Free Report) currently carries a Zacks Rank #2 (Buy). LII delivered a trailing four-quarter average earnings surprise of 15.4%.

In the past 60 days, the Zacks Consensus Estimate for Lennox’s 2025 earnings has increased 5%.

Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2. NDSN delivered a trailing four-quarter average earnings surprise of 3.2%.

In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2025 (ending October 2025) earnings has increased 0.7%.

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