DE vs JCI: Dividend Yield, Growth & Safety Comparison
Deere & Co (DE) and Johnson Controls International plc (JCI) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — DE at 1.09% and JCI at 1.11%. For dividend growth, DE leads with a 5-year CAGR of 13.5% versus JCI's -10.4%. Both stocks carry a "Safe" dividend safety rating. DE is a Dividend Challenger with 5 years of consecutive increases.
Key Metrics Comparison
| Metric | DE | JCI |
|---|
| Dividend Yield | 1.09% | 1.11% |
| Annual Dividend | $6.48 | $1.54 |
| 5-Year CAGR | 13.5% | -10.4% |
| Payout Ratio | 35% | 52% |
| Consecutive Years | 5 | 0 |
| Price | $606.06 | $138.79 |
Yield Comparison
Johnson Controls International plc (JCI) currently yields 1.11%, which is modest for the broader market. Deere & Co (DE) yields a nearly identical 1.09%. In dollar terms, JCI pays $1.54/share annually versus DE's $6.48/share.
Dividend Growth
Over the past five years, DE has grown its dividend at a 13.5% CAGR compared to JCI's -10.4%. DE: Dividend growth is slowing — the 3-year CAGR of 10.4% trails the 5-year rate of 13.5% and the 10-year rate of 11.7%. JCI: Dividend growth is slowing — the 3-year CAGR of -29.0% trails the 5-year rate of -10.4% and the 10-year rate of -20.2%.
Dividend Safety
DE's dividend safety is rated "Safe." The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x. JCI's dividend safety is rated "Safe." The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x. DE's payout ratio of 35% is more conservative than JCI's 52%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in JCI generates approximately $111/year in dividend income, compared to $109/year from DE — a difference of $2/year. At $100,000, that gap widens to $20/year.
Verdict
- Best for growth: DE
- Best for safety: DE
Frequently Asked Questions
Which has a higher dividend yield, DE or JCI?
Johnson Controls International plc (JCI) has a higher dividend yield of 1.11% compared to Deere & Co (DE) at 1.09%.
Is DE or JCI a better dividend growth stock?
Deere & Co has the stronger dividend growth with a 5-year CAGR of 13.5%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, DE or JCI?
Deere & Co's dividend safety is rated "Safe" while Johnson Controls International plc is rated "Safe." The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x. The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
How much income does $10,000 in DE vs JCI generate?
A $10,000 investment in DE generates approximately $109/year in dividends, while the same amount in JCI generates about $111/year.
Is DE or JCI a Dividend Aristocrat?
Deere & Co is a Dividend Challenger with 5 consecutive years of increases. Johnson Controls International plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, DE or JCI?
Deere & Co has a lower payout ratio of 35% compared to Johnson Controls International plc's 52%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DE vs JCI: which is better for retirement income?
It depends on your priorities. DE for dividend growth, DE for safety. Many retirement investors hold both for diversification.
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