Illinois Tool Works Inc. (NYSE:ITW) Increases Dividend to $1.72 Per Share

Illinois Tool Works Inc. (NYSE:ITW) declared a quarterly dividend on Friday, August 7th. Stockholders of record on Wednesday, September 30th will be given a dividend of $1.72 per share by the industrial products company on Friday, October 9th. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, September 30th. This is a 6.8% increase from Illinois Tool Works’s previous quarterly dividend of $1.61.

Illinois Tool Works has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 55 years. Illinois Tool Works has a dividend payout ratio of 62.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Illinois Tool Works to earn $12.45 per share next year, which means the company should continue to be able to cover its $6.88 annual dividend with an expected future payout ratio of 55.3%.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $274.20 on Monday. The company has a market cap of $78.09 billion, a price-to-earnings ratio of 24.86, a PEG ratio of 2.93 and a beta of 0.98. The firm has a 50 day moving average price of $279.66 and a 200 day moving average price of $268.29. Illinois Tool Works has a 1 year low of $238.82 and a 1 year high of $303.15. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11.

Illinois Tool Works (NYSE:ITW) last issued its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, beating analysts’ consensus estimates of $2.80 by $0.04. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%.The firm had revenue of $4.30 billion for the quarter, compared to analysts’ expectations of $4.19 billion. During the same quarter last year, the firm earned $2.58 earnings per share. The firm’s revenue for the quarter was up 6.1% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS. Sell-side analysts predict that Illinois Tool Works will post 11.44 earnings per share for the current year.

Illinois Tool Works Company Profile

Illinois Tool Works Inc (NYSE: ITW) is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and related solutions for businesses worldwide. Its products are used across industries including automotive, food service, construction, electronics, welding and general manufacturing.

The company operates through several business segments, including Automotive, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products.