Johnson Controls dividend
Johnson Controls' latest declared quarterly dividend is $0.40, and management intends to continue paying dividends through FY2026. FY2025 free cash flow was $2.120 billion, against $976 million of dividends.
How much does Johnson Controls pay in dividends?
The base reflects a rising dividend record but competing demands from debt, investment and environmental obligations. FY2025 free cash flow was $2.120 billion, against $976 million of dividends. The latest declared quarterly dividend is $0.40, and management intends to continue paying dividends through FY2026.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 2.63 | 2.08 | 2.27 | 1.83 | |
| Real free cash flow per share | 3.03 | 1.43 | 1.90 | 0.93 | |
| Free cash flow per share | 3.24 | 1.59 | 2.05 | 1.07 | |
| − Dividends paid, per share | 1.49 | 1.48 | 1.43 | 1.31 | 1.06 |
What this means. The company's own free cash flow count matches ours, but real free cash flow is lower because it subtracts shares given to employees as pay.
Is Johnson Controls' dividend covered by its cash?
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,120 | 1,074 | 1,410 | 750 | |
| − Dividends paid | 976 | 1,000 | 980 | 916 | 762 |
| − Share buybacks | 5,991 | 1,246 | 625 | 1,441 | 1,307 |
| Paid out, % of free cash flow | 328.6% | 209.1% | 113.8% | 314.3% |
What could change Johnson Controls' dividend?
Dividends rise moderately in the base case from $1.60 per share to $1.76. The quarterly rate stays at $0.40 initially, then rises by $0.02 annually. The bear freezes the dividend at $1.60, while the bull reaches $1.96 through repeated $0.03 quarterly increases.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 3,220 (2,835 / 3,456) | 3,612 (2,836 / 4,039) | 3,928 (2,850 / 4,620) |
| Shares (millions) | 598 (607 / 592) | 591 (608 / 581) | 584 (609 / 571) |
| Dividends per share | 1.60 (1.60 / 1.72) | 1.68 (1.60 / 1.84) | 1.76 (1.60 / 1.96) |
| Price to earnings | 23.00 (18.00 / 28.00) | 22.00 (16.00 / 30.00) | 21.00 (14.00 / 32.00) |