Johnson Controls Delivers Big Dividend Increase

Johnson Controls [[JCI]] announced yesterday that the company will increase their quarterly dividend by 23% to $.16 per share.

 

Following the dividend increase, JCI shares will yield 1.7% based on yesterday’s closing price.

 

Yesterday’s dividend announcement was inline with our dividend forecast for Johnson Controls. We expected a $.03 dividend increase to $.16 per share based on a targeted 30% dividend payout ratio. Johnson Controls plans to continue increasing their dividend payout ratio in the future.

 

“Johnson Controls is committed to providing shareholder value, and the increase of our dividend is reflective of our financial performance and our confidence in delivering record earnings in 2011 and the future growth of the company,” said Chairman and Chief Executive Officer Stephen A. Roell. “We are proud of our legacy of paying consecutive dividends since 1887 and being able to reward our shareholders with a significantly higher dividend.”

 

The dividend will be payable on January 4, 2010 to shareholders of record as of December 10, 2010.

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