Shares of Johnson Controls ( JCI) were down slightly in early trading after the automotive supplier announced it was shutting 10 plants and would be cutting jobs. This restructuring announcement follows a recent $495 million restructuring program announced during the fourth quarter of fiscal 2008. Management does expect to manage through this environment from a position of strength and enhance its ability to gain further market share while improving its margins. We have avoided shares of JCI since our early June coverage began, when the stock was trading at $31.50. The company has a 4.03% dividend yield, based on last night's closing stock price of $12.90. The stock broke some recent support and now will look for support in the $6-8 price range. If the shares can firm up here, we see overhead resistance around the $14-$15 levels. We would remain on the sidelines for now. Johnson Controls is not recommended at this time, holding a Dividend.com Rating of 2.7 out of 5 stars.
Pepsi Bottling Raises Dividend Payout 6%
Shares of Pepsi Bottling Group ( PBG) were relatively unchanged this morning after the company announced that its board of directors authorized an increase in the company's quarterly dividend, raising it 6% from 17 cents to 18 cents. It marks the sixth consecutive year that the board has increased the dividend. The increased quarterly dividend of 18 cents per share will be paid on June 30 to all PBG shareholders of record as of June 6. We have avoided shares of PBG since our early June coverage began, and the stock was trading at $31.46. The company has a dividend yield of 3.24%, based on last night's closing stock price of $22.19. The stock has technical support at the $18 level, and if that fails to hold, it can test $12 a share. If the shares can firm up, we see overhead resistance around the $24-$26 price points. We would remain on the sidelines for now, but we are happy to see the dividend increase.