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Power Play: Attractive valuation for Johnson Controls

An employee walks through the Johnson Controls Inc and Saft Groupe SA factory, a joint venture producing Lithium-ion batteries in Nersac, France.
Fabrice Dimier | Bloomberg | Getty Images
An employee walks through the Johnson Controls Inc and Saft Groupe SA factory, a joint venture producing Lithium-ion batteries in Nersac, France.

Stocks are on pace for meager gains this year, with the S&P 500 and Dow up one-percent and the Nasdaq down 4 percent.

In an environment with low-single digit returns, Heartland Financial CIO Nancy Tengler, tells CNBC's "Power Lunch" she likes a company like Johnson Controls, which is outperforming the market this year.

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"The auto battery business has improved Johnson Controls' margin expansion. The Tyco merger improves building business and the company looks a lot more like an industrial than an auto parts company," Tengler said.

Another plus for Tengler is the dividend growth at Johnson Controls. "Very attractive valuation [with] dividend growth 13 percent annually previous five years; 2.6 percent yield," Tengler said.

Johnson Controls is higher during trading.