JCI vs PNR: Dividend Yield, Growth & Safety Comparison
Johnson Controls International plc (JCI) and PENTAIR plc (PNR) are both in the Industrials sector, making them natural rivals for dividend investors. Both stocks offer similar yields — JCI at 1.11% and PNR at 1.01%. For dividend growth, PNR leads with a 5-year CAGR of 13.6% versus JCI's -10.4%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | JCI | PNR |
|---|
| Dividend Yield | 1.11% | 1.01% |
| Annual Dividend | $1.54 | $1.00 |
| 5-Year CAGR | -10.4% | 13.6% |
| Payout Ratio | 52% | 25% |
| Consecutive Years | 0 | 0 |
| Price | $138.79 | $101.30 |
Yield Comparison
Johnson Controls International plc (JCI) currently yields 1.11%, which is modest for the broader market. That's 0.10% more than PENTAIR plc (PNR), which yields 1.01%. In dollar terms, JCI pays $1.54/share annually versus PNR's $1.00/share.
Dividend Growth
Over the past five years, PNR has grown its dividend at a 13.6% 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%. PNR: Dividend growth is accelerating — the 3-year CAGR of 23.1% exceeds the 5-year rate of 13.6% and the 10-year rate of 4.4%.
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. PNR's dividend safety is rated "Safe." The payout ratio of 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x. PNR's payout ratio of 25% 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 $101/year from PNR — a difference of $10/year. At $100,000, that gap widens to $100/year.
Verdict
- Best for income: JCI
- Best for growth: PNR
- Best for safety: PNR
Frequently Asked Questions
Which has a higher dividend yield, JCI or PNR?
Johnson Controls International plc (JCI) has a higher dividend yield of 1.11% compared to PENTAIR plc (PNR) at 1.01%.
Is JCI or PNR a better dividend growth stock?
PENTAIR plc has the stronger dividend growth with a 5-year CAGR of 13.6%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, JCI or PNR?
Johnson Controls International plc's dividend safety is rated "Safe" while PENTAIR plc 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 25% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.9x.
How much income does $10,000 in JCI vs PNR generate?
A $10,000 investment in JCI generates approximately $111/year in dividends, while the same amount in PNR generates about $101/year.
Which has a lower payout ratio, JCI or PNR?
PENTAIR plc has a lower payout ratio of 25% compared to Johnson Controls International plc's 52%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JCI vs PNR: which is better for retirement income?
It depends on your priorities. JCI for current income, PNR for dividend growth, PNR for safety. Many retirement investors hold both for diversification.
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