JCI vs SWK: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | JCI | SWK |
|---|
| Dividend Yield | 1.11% | 3.60% |
| Annual Dividend | $1.54 | $3.30 |
| 5-Year CAGR | -10.4% | 2.6% |
| Payout Ratio | 52% | 1% |
| Consecutive Years | 0 | 28 |
| Price | $138.79 | $91.08 |
Yield Comparison
Stanley Black & Decker, Inc. (SWK) currently yields 3.60%, which is solid for the broader market. That's 2.49% more than Johnson Controls International plc (JCI), which yields 1.11%. In dollar terms, SWK pays $3.30/share annually versus JCI's $1.54/share.
Dividend Growth
Over the past five years, SWK has grown its dividend at a 2.6% 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%. 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'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. SWK's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. SWK's payout ratio of 1% is more conservative than JCI's 52%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SWK generates approximately $360/year in dividend income, compared to $111/year from JCI — a difference of $249/year. At $100,000, that gap widens to $2490/year.
Verdict
- Best for income: SWK
- Best for growth: SWK
- Best for safety: SWK
Frequently Asked Questions
Which has a higher dividend yield, JCI or SWK?
Stanley Black & Decker, Inc. (SWK) has a higher dividend yield of 3.60% compared to Johnson Controls International plc (JCI) at 1.11%.
Is JCI or SWK a better dividend growth stock?
Stanley Black & Decker, Inc. has the stronger dividend growth with a 5-year CAGR of 2.6%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, JCI or SWK?
Johnson Controls International plc's dividend safety is rated "Safe" while Stanley Black & Decker, Inc. 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 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x.
How much income does $10,000 in JCI vs SWK generate?
A $10,000 investment in JCI generates approximately $111/year in dividends, while the same amount in SWK generates about $360/year.
Is JCI or SWK a Dividend Aristocrat?
Stanley Black & Decker, Inc. is a Dividend Aristocrat with 28 consecutive years of increases. Johnson Controls International plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, JCI or SWK?
Stanley Black & Decker, Inc. has a lower payout ratio of 1% compared to Johnson Controls International plc's 52%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JCI vs SWK: which is better for retirement income?
It depends on your priorities. SWK for current income, SWK for dividend growth, SWK for safety. Many retirement investors hold both for diversification.
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