CORK, Ireland - Johnson Controls (NYSE:JCI) International plc (NYSE:JCI), a company specializing in smart and sustainable building solutions, announced a regular quarterly dividend of $0.37 per share. The dividend is to be paid on October 18, 2024, to shareholders who are on record as of September 25, 2024. This decision by the board of directors maintains the company's long-standing tradition of dividend payments, which have been distributed consecutively since 1887.
Johnson Controls is recognized for its comprehensive digital offering, OpenBlue, which serves various industries including healthcare, education, data centers, and manufacturing. With nearly 140 years of innovation, the company boasts a global team of 100,000 experts and operates in over 150 countries. It claims to possess the world's largest portfolio of building technology, software, and service solutions, provided by some of the most reputable names in the industry.
The dividend announcement reflects the company's commitment to providing value to its shareholders and underscores its financial health. Johnson Controls has been a consistent dividend payer, which is often seen as a sign of a company's stability and maturity. The dividend yield and the payout ratio are important indicators for investors, as they provide insights into the company's financial strategy and its ability to generate cash flow.
This financial decision is part of Johnson Controls' efforts to enhance shareholder returns while continuing to invest in strategic growth areas. The company's focus on smart, healthy, and sustainable buildings aligns with global trends towards energy efficiency and reduced environmental impact.
Johnson Controls encourages interested parties to visit their website for more information and to follow their social media platforms for updates. The announcement of the quarterly dividend is based on a press release statement from Johnson Controls International plc.
In other recent news, Johnson Controls International plc reported a third-quarter organic sales growth of 3% and a segment margin of 17.9%. The company also disclosed a 10% increase in its backlog, reaching $12.9 billion. As part of a strategic shift, Johnson Controls is focusing on becoming a pure-play provider for commercial building solutions, particularly data centers, and has announced the divestiture of its Residential and Light Commercial HVAC and Air Distribution Technologies businesses.
Among other developments, Johnson Controls is undergoing a leadership transition with the retirement of CEO George Oliver and the appointment of Patrick Decker, former CEO of Xylem (NYSE:XYL), to its Board of Directors. In relation to this, Morgan Stanley (NYSE:MS) initiated coverage on Johnson Controls with an Overweight rating and a price target of $85.00, while RBC Capital upgraded its rating to Sector Perform and increased the price target to $69. Oppenheimer maintained an Outperform rating and increased the price target to $79.
These recent developments underscore Johnson Controls' ongoing transformation, with the company focusing on growth in the service and digital offerings, expecting mid- to high-single-digit growth in service business and mid-single-digit growth in systems business. The company's strong financial results and optimistic guidance reflect confidence in its future direction and operational strategy.
InvestingPro Insights
Johnson Controls International plc (NYSE:JCI) continues to demonstrate its commitment to shareholder returns, as evidenced by its latest dividend declaration. With a market capitalization of approximately $46.99 billion and a dividend yield of 2.1%, the company stands out as a significant player in the Building Products industry.
InvestingPro Tips highlight Johnson Controls' track record of raising its dividend for three consecutive years and maintaining dividend payments for an impressive 54 consecutive years. This consistency aligns with the company's historical reputation for stability and reliability. Additionally, analysts predict that Johnson Controls will remain profitable this year, a sentiment supported by a gross profit margin of nearly 32.93% over the last twelve months as of Q3 2024.
The company's financial health is further illustrated by its moderate level of debt and a Price to Earnings (P/E) ratio of 29.42, which adjusts to a more favorable 20.45 when considering the last twelve months as of Q3 2024. With a Price to Book value of 2.94, Johnson Controls is positioned to maintain its robust financial performance.
For investors seeking more insights, there are additional InvestingPro Tips available, providing a comprehensive analysis of Johnson Controls' financials, market position, and future outlook. Access these valuable tips by visiting https://www.investing.com/pro/JCI.
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