JCI vs SWK: Dividend Comparison
Dividend data as of
Johnson Controls International plc (JCI) and Stanley Black & Decker, Inc. (SWK) are both in the Industrials sector, making them natural rivals for dividend investors. SWK offers a significantly higher 3.60% yield compared to JCI's 1.11%, a gap of 2.49%. For dividend growth, SWK leads with a 5-year CAGR of 2.6% versus JCI's -10.4%. Both stocks carry a "Safe" dividend safety rating. SWK is a Dividend Aristocrat with 28 years of consecutive increases.
Verdict
Yield Analysis
SWK yields 2.49% more than JCI. In dollar terms, JCI pays $1.54/share vs SWK's $3.30/share annually.
Dividend Growth
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%.
SWK: Dividend growth is slowing — the 3-year CAGR of 1.2% trails the 5-year rate of 2.6% and the 10-year rate of 4.3%.
Dividend Safety
JCI: The payout ratio of 52% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.9x.
SWK: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in JCI vs SWK today?
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.
At $91.08 per share, $10,000 buys about 109.8 shares of Stanley Black & Decker, Inc. (SWK). Each share pays $3.30 per year in dividends, so the position starts out generating roughly $362 per year — about $30 a month.
SWK is the larger income stream from day one: $251 per year more on the same $10,000 invested.
What could $10,000 of JCI or SWK income look like in 10 years?
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.
Stanley Black & Decker, Inc. (SWK) has raised its dividend about 2.6% a year over the past five years. If that pace held, the $360 per year that $10,000 generates today at the current 3.60% yield would reach $464 per year by 2036 — a 4.6% yield on the original cost.
On those trailing rates, SWK pays more in 2036: $464 versus $37 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would JCI's dividend growth overtake SWK's higher yield?
It doesn't, on the trailing numbers. Stanley Black & Decker, Inc. (SWK) yields more today (3.60% vs 1.11%) and has also grown its dividend at least as fast (2.6% vs -10.4% a year over five years). Unless JCI accelerates its raises or SWK stumbles, JCI never closes the income gap — SWK wins on both current income and growth.
Can JCI and SWK afford their dividends?
Johnson Controls International plc (JCI) earns $2.97 per share against $1.54 paid out in dividends — 1.9x coverage (a 52% payout ratio).
Stanley Black & Decker, Inc. (SWK) earns $2.65 per share against $3.30 paid out in dividends — 0.8x coverage (a 1% payout ratio).
JCI'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 SWK if earnings weaken.
Which fits an early-retirement income portfolio better, JCI or SWK?
For income you need right now, Stanley Black & Decker, Inc. (SWK) leads: $100,000 invested today pays about $300 a month at the current 3.60% yield, versus $92 a month from Johnson Controls International plc (JCI) at 1.11%.
SWK also leads on dividend growth (2.6% vs -10.4% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: SWK has raised its dividend 28 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 $41/yr in JCI vs $661/yr in SWK 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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