Illinois Tool Works Inc. (NYSE:ITW) Announces Dividend Increase – $1.50 Per Share

Illinois Tool Works Inc. (NYSE:ITW) announced a quarterly dividend on Friday, August 2nd, Wall Street Journal reports. Shareholders of record on Monday, September 30th will be paid a dividend of 1.50 per share by the industrial products company on Friday, October 11th. This represents a $6.00 dividend on an annualized basis and a yield of 2.27%. The ex-dividend date of this dividend is Monday, September 30th. This is a positive change from Illinois Tool Works’s previous quarterly dividend of $1.40.

Illinois Tool Works has increased its dividend by an average of 7.0% per year over the last three years and has raised its dividend annually for the last 55 consecutive years. Illinois Tool Works has a dividend payout ratio of 55.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Illinois Tool Works to earn $10.74 per share next year, which means the company should continue to be able to cover its $6.00 annual dividend with an expected future payout ratio of 55.9%.

Illinois Tool Works Stock Up 0.8 %

ITW stock opened at $263.97 on Friday. The company has a market capitalization of $78.77 billion, a P/E ratio of 26.03, a PEG ratio of 4.09 and a beta of 1.10. The firm has a 50 day simple moving average of $247.31 and a 200-day simple moving average of $248.16. The company has a current ratio of 1.30, a quick ratio of 0.92 and a debt-to-equity ratio of 2.17. Illinois Tool Works has a twelve month low of $217.50 and a twelve month high of $271.15.

Illinois Tool Works (NYSE:ITW) last issued its earnings results on Tuesday, July 30th. The industrial products company reported $2.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.45 by $0.09. The business had revenue of $4.03 billion for the quarter, compared to analyst estimates of $4.08 billion. Illinois Tool Works had a net margin of 19.15% and a return on equity of 99.74%. The company’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.41 EPS. On average, equities research analysts predict that Illinois Tool Works will post 10.18 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on ITW. Wells Fargo & Company raised their price objective on Illinois Tool Works from $230.00 to $236.00 and gave the stock an “underweight” rating in a research note on Wednesday, July 31st. Truist Financial decreased their price target on shares of Illinois Tool Works from $283.00 to $281.00 and set a “buy” rating for the company in a report on Wednesday, July 31st. JPMorgan Chase & Co. increased their price objective on shares of Illinois Tool Works from $267.00 to $270.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 31st. Argus upgraded Illinois Tool Works to a “strong-buy” rating in a research note on Wednesday, July 31st. Finally, Barclays dropped their price target on Illinois Tool Works from $217.00 to $215.00 and set an “underweight” rating on the stock in a research report on Wednesday, July 31st. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $250.22.

Illinois Tool Works Company Profile

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.