Illinois Tool Works Inc. (ITW) to Distribute Quarterly Dividend of $1.72 on October 9th

Illinois Tool Works Inc. (NYSE:ITW) announced a quarterly dividend on Friday, August 7th. Investors of record on Wednesday, September 30th will be paid 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 yield of 2.5%. The ex-dividend date 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 payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 55 consecutive years. Illinois Tool Works has a payout ratio of 62.5% indicating that its dividend is sufficiently covered by earnings. 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

Shares of NYSE ITW opened at $274.20 on Monday. The firm’s 50-day simple moving average is $279.66 and its 200 day simple moving average is $268.29. Illinois Tool Works has a fifty-two week low of $238.82 and a fifty-two week high of $303.15. The stock 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 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 quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.80 by $0.04. The business had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.19 billion. Illinois Tool Works had a net margin of 19.39% and a return on equity of 101.72%. During the same period in the prior year, the firm posted $2.58 EPS. The firm’s quarterly revenue 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. As a group, research analysts anticipate that Illinois Tool Works will post 11.44 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

ITW has been the topic of a number of analyst reports. JPMorgan Chase & Co. boosted their target price on shares of Illinois Tool Works from $310.00 to $350.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Wolfe Research reissued an “underperform” rating and issued a $286.00 price target on shares of Illinois Tool Works in a research note on Thursday, July 9th. Truist Financial increased their price objective on Illinois Tool Works from $280.00 to $301.00 and gave the company a “hold” rating in a research report on Thursday, July 2nd. Robert W. Baird lifted their target price on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Finally, Weiss Ratings upgraded Illinois Tool Works from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $281.25.

About Illinois Tool Works

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.