JCI vs UNP: Dividend Yield, Growth & Safety Comparison
Johnson Controls International plc (JCI) and Union Pacific Corp (UNP) are both in the Industrials sector, making them natural rivals for dividend investors. UNP edges ahead on yield at 2.08% versus JCI's 1.11%. For dividend growth, UNP leads with a 5-year CAGR of 6.1% versus JCI's -10.4%. Both stocks carry a "Safe" dividend safety rating. UNP is a Dividend Contender with 19 years of consecutive increases.
Key Metrics Comparison
| Metric | JCI | UNP |
|---|
| Dividend Yield | 1.11% | 2.08% |
| Annual Dividend | $1.54 | $5.44 |
| 5-Year CAGR | -10.4% | 6.1% |
| Payout Ratio | 52% | 45% |
| Consecutive Years | 0 | 19 |
| Price | $138.79 | $260.92 |
Yield Comparison
Union Pacific Corp (UNP) currently yields 2.08%, which is solid for the broader market. That's 0.97% more than Johnson Controls International plc (JCI), which yields 1.11%. In dollar terms, UNP pays $5.44/share annually versus JCI's $1.54/share.
Dividend Growth
Over the past five years, UNP has grown its dividend at a 6.1% 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%. UNP: Dividend growth is slowing — the 3-year CAGR of 2.3% trails the 5-year rate of 6.1% and the 10-year rate of 10.3%.
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. UNP's dividend safety is rated "Safe." The payout ratio of 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x. UNP's payout ratio of 45% is more conservative than JCI's 52%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in UNP generates approximately $208/year in dividend income, compared to $111/year from JCI — a difference of $97/year. At $100,000, that gap widens to $970/year.
Verdict
- Best for income: UNP
- Best for growth: UNP
- Best for safety: UNP
Frequently Asked Questions
Which has a higher dividend yield, JCI or UNP?
Union Pacific Corp (UNP) has a higher dividend yield of 2.08% compared to Johnson Controls International plc (JCI) at 1.11%.
Is JCI or UNP a better dividend growth stock?
Union Pacific Corp has the stronger dividend growth with a 5-year CAGR of 6.1%, compared to Johnson Controls International plc's -10.4%.
Which is safer for dividend income, JCI or UNP?
Johnson Controls International plc's dividend safety is rated "Safe" while Union Pacific 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 45% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.2x.
How much income does $10,000 in JCI vs UNP generate?
A $10,000 investment in JCI generates approximately $111/year in dividends, while the same amount in UNP generates about $208/year.
Is JCI or UNP a Dividend Aristocrat?
Union Pacific Corp is a Dividend Contender with 19 consecutive years of increases. Johnson Controls International plc does not currently qualify for aristocrat status.
Which has a lower payout ratio, JCI or UNP?
Union Pacific Corp has a lower payout ratio of 45% compared to Johnson Controls International plc's 52%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JCI vs UNP: which is better for retirement income?
It depends on your priorities. UNP for current income, UNP for dividend growth, UNP for safety. Many retirement investors hold both for diversification.
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