JCI vs NDSN: Dividend Yield, Growth & Safety Comparison
Johnson Controls International plc (JCI) and Nordson Corp (NDSN) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — JCI at 1.11% and NDSN at 1.07%. For dividend growth, NDSN leads with a 5-year CAGR of 21.9% versus JCI's -10.4%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | JCI | NDSN |
|---|
| Dividend Yield | 1.11% | 1.07% |
| Annual Dividend | $1.54 | $3.16 |
| 5-Year CAGR | -10.4% | 21.9% |
| Payout Ratio | 52% | 37% |
| Consecutive Years | 0 | 1 |
| Price | $138.79 | $298.62 |
Yield Comparison
Johnson Controls International plc (JCI) currently yields 1.11%, which is modest for the broader market. Nordson Corp (NDSN) yields a nearly identical 1.07%. In dollar terms, JCI pays $1.54/share annually versus NDSN's $3.16/share.
Dividend Growth
Over the past five years, NDSN has grown its dividend at a 21.9% CAGR compared to JCI's -10.4%. 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%. NDSN: Dividend growth has been steady, with a 3-year CAGR of 22.3% and a 5-year CAGR of 21.9% (10-year: 16.3%).
Dividend Safety
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. NDSN's dividend safety is rated "Safe." The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. NDSN's payout ratio of 37% 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 $107/year from NDSN — a difference of $4/year. At $100,000, that gap widens to $40/year.
Verdict
- Best for growth: NDSN
- Best for safety: NDSN
Frequently Asked Questions
Which has a higher dividend yield, JCI or NDSN?
Johnson Controls International plc (JCI) has a higher dividend yield of 1.11% compared to Nordson Corp (NDSN) at 1.07%.
Is JCI or NDSN a better dividend growth stock?
Nordson Corp has the stronger dividend growth with a 5-year CAGR of 21.9%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, JCI or NDSN?
Johnson Controls International plc's dividend safety is rated "Safe" while Nordson Corp is rated "Safe." The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x. The payout ratio of 37% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
How much income does $10,000 in JCI vs NDSN generate?
A $10,000 investment in JCI generates approximately $111/year in dividends, while the same amount in NDSN generates about $107/year.
Which has a lower payout ratio, JCI or NDSN?
Nordson Corp has a lower payout ratio of 37% compared to Johnson Controls International plc's 52%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JCI vs NDSN: which is better for retirement income?
It depends on your priorities. NDSN for dividend growth, NDSN for safety. Many retirement investors hold both for diversification.
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