HON vs JCI: Dividend Yield, Growth & Safety Comparison
Honeywell International Inc (HON) and Johnson Controls International plc (JCI) are both in the Industrials sector, making them natural rivals for dividend investors. HON edges ahead on yield at 1.88% versus JCI's 1.11%. For dividend growth, HON leads with a 5-year CAGR of 5.4% versus JCI's -10.4%. JCI holds the edge in dividend safety with a "Safe" rating. HON is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | HON | JCI |
|---|
| Dividend Yield | 1.88% | 1.11% |
| Annual Dividend | $4.58 | $1.54 |
| 5-Year CAGR | 5.4% | -10.4% |
| Payout Ratio | 61% | 52% |
| Consecutive Years | 15 | 0 |
| Price | $241.59 | $138.79 |
Yield Comparison
Honeywell International Inc (HON) currently yields 1.88%, which is modest for the broader market. That's 0.77% more than Johnson Controls International plc (JCI), which yields 1.11%. In dollar terms, HON pays $4.58/share annually versus JCI's $1.54/share.
Dividend Growth
Over the past five years, HON has grown its dividend at a 5.4% CAGR compared to JCI's -10.4%. HON: Dividend growth has been steady, with a 3-year CAGR of 5.6% and a 5-year CAGR of 5.4% (10-year: 7.9%). 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
HON's dividend safety is rated "Moderate." The payout ratio of 61% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. 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. JCI's payout ratio of 52% is more conservative than HON's 61%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in HON generates approximately $188/year in dividend income, compared to $111/year from JCI — a difference of $77/year. At $100,000, that gap widens to $770/year.
Verdict
- Best for income: HON
- Best for growth: HON
- Best for safety: JCI
Frequently Asked Questions
Which has a higher dividend yield, HON or JCI?
Honeywell International Inc (HON) has a higher dividend yield of 1.88% compared to Johnson Controls International plc (JCI) at 1.11%.
Is HON or JCI a better dividend growth stock?
Honeywell International Inc has the stronger dividend growth with a 5-year CAGR of 5.4%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, HON or JCI?
Honeywell International Inc's dividend safety is rated "Moderate" while Johnson Controls International plc is rated "Safe." The payout ratio of 61% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. 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 HON vs JCI generate?
A $10,000 investment in HON generates approximately $188/year in dividends, while the same amount in JCI generates about $111/year.
Is HON or JCI a Dividend Aristocrat?
Honeywell International Inc is a Dividend Contender with 15 consecutive years of increases. Johnson Controls International plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, HON or JCI?
Johnson Controls International plc has a lower payout ratio of 52% compared to Honeywell International Inc's 61%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HON vs JCI: which is better for retirement income?
It depends on your priorities. HON for current income, HON for dividend growth, JCI for safety. Many retirement investors hold both for diversification.
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