JCI - Johnson Controls: 2.7% Yield And A Realistic Path To 15% Annual Returns

2024-01-23 09:33:22 ET

Summary

• Johnson Controls International is an industrial player that has underperformed the market in the past, but currently offers a buying opportunity.
• JCI is a global leader in smart, healthy, and sustainable buildings, competing with companies like Honeywell and Carrier.
• Despite economic weakness, JCI has shown strong financial performance and has a healthy balance sheet, making it an attractive investment with a dividend yield of 2.7%.

Introduction

Johnson Controls International ( JCI ) is a company I had on my list for a while.

Now, it's time to finally dive into a very interesting industrial player. Not only is this a stock that was requested by a number of followers, but it also goes well with other stocks that I frequently cover, including Honeywell International ( HON ) and Carrier ( CARR ).

One of the reasons why I never cared much for JCI in the past was its poor performance. Over the past ten years, JCI shares have returned just 82%, including dividends.

An investment in the S&P 500 would have returned 215%. The Industrial Select Sector SPDR ETF ( XLI ) returned 160% during this period....

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