DE vs JCI: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
JCI yields 0.02% more than DE. In dollar terms, DE pays $6.48/share vs JCI's $1.54/share annually.
Dividend Growth
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: The payout ratio of 35% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.9x.
JCI: The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DE vs JCI today?
At $606.06 per share, $10,000 buys about 16.5 shares of Deere & Co (DE). Each share pays $6.48 per year in dividends, so the position starts out generating roughly $107 per year — about $9 a month.
At $138.79 per share, $10,000 buys about 72.1 shares of Johnson Controls International plc (JCI). Each share pays $1.54 per year in dividends, so the position starts out generating roughly $111 per year — about $9 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of DE or JCI income look like in 10 years?
Deere & Co (DE) has raised its dividend about 13.5% a year over the past five years. If that pace held, the $109 per year that $10,000 generates today at the current 1.09% yield would reach $388 per year by 2036 — a 3.9% yield on the original cost.
Johnson Controls International plc (JCI)'s dividend has shrunk about 10.4% a year over the past five years. If that trend continued, today's $111 per year on $10,000 (at the current 1.11% yield) would fall to $37 per year by 2036.
On those trailing rates, DE pays more in 2036: $388 versus $37 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can DE and JCI afford their dividends?
Deere & Co (DE) earns $18.51 per share against $6.48 paid out in dividends — 2.9x coverage (a 35% payout ratio).
Johnson Controls International plc (JCI) earns $2.97 per share against $1.54 paid out in dividends — 1.9x coverage (a 52% payout ratio).
DE's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for JCI if earnings weaken.
Which fits an early-retirement income portfolio better, DE or JCI?
For income you need right now, Johnson Controls International plc (JCI) leads: $100,000 invested today pays about $92 a month at the current 1.11% yield, versus $91 a month from Deere & Co (DE) at 1.09%.
With a decade or more before the income is needed, DE's faster dividend growth (13.5% vs -10.4% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: DE has raised its dividend 5 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $433/yr in DE vs $41/yr in JCI by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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