Will Johnson Controls (JCI) Stock Benefit From Higher Quarterly Dividend?

NEW YORK (TheStreet) -- Johnson Controls (JCI) shares are flat in trading at $50.23 today after the automatic temperature regulation systems installer raised its quarterly dividend to 26 cents per share of common stock from 22 cents per share, an 18% increase.

The dividend will be payable January 5 to shareholders of record on December 12. The company has increased its dividend in 34 of the last 36 years. 

The company last released its quarterly results on October 30, reporting earnings of $1.04 cents on revenue of $10.98 billion. Analysts were expecting earnings of $1.01 per share on revenue of $11.21 billion.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates JOHNSON CONTROLS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate JOHNSON CONTROLS INC (JCI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • JOHNSON CONTROLS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JOHNSON CONTROLS INC increased its bottom line by earning $2.11 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($3.63 versus $2.11).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 194.3% when compared to the same quarter one year prior, rising from $105.00 million to $309.00 million.
  • Net operating cash flow has slightly increased to $1,242.00 million or 9.62% when compared to the same quarter last year. Despite an increase in cash flow, JOHNSON CONTROLS INC's cash flow growth rate is still lower than the industry average growth rate of 21.39%.
  • JCI, with its decline in revenue, slightly underperformed the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: JCI Ratings Report
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday

Target Slumps After Q1 Earnings Miss as Comparable Sales Slow, Traffic Improves

Target Slumps After Q1 Earnings Miss as Comparable Sales Slow, Traffic Improves

Pound Slides as Inflation Slows, Doubts Grow Over Bank of England Rate Hikes

Pound Slides as Inflation Slows, Doubts Grow Over Bank of England Rate Hikes