Illinois Tool Works Inc. (NYSE:ITW) Increases Dividend to $1.07 Per Share

Illinois Tool Works Inc. (NYSE:ITW) declared a quarterly dividend on Friday, August 2nd, RTT News reports. Stockholders of record on Monday, September 30th will be given a dividend of 1.07 per share by the industrial products company on Wednesday, October 9th. This represents a $4.28 dividend on an annualized basis and a dividend yield of 2.82%. This is a boost from Illinois Tool Works’s previous quarterly dividend of $1.00.

Illinois Tool Works has raised its dividend by an average of 18.5% annually over the last three years and has increased its dividend annually for the last 55 consecutive years. Illinois Tool Works has a payout ratio of 52.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Illinois Tool Works to earn $8.17 per share next year, which means the company should continue to be able to cover its $4.00 annual dividend with an expected future payout ratio of 49.0%.

Shares of ITW stock traded up $0.46 on Friday, reaching $151.87. The company had a trading volume of 1,106,748 shares, compared to its average volume of 1,323,635. The firm has a market capitalization of $49.32 billion, a PE ratio of 19.98, a PEG ratio of 2.62 and a beta of 1.24. The company has a debt-to-equity ratio of 2.52, a current ratio of 2.87 and a quick ratio of 2.30. Illinois Tool Works has a one year low of $117.75 and a one year high of $160.78. The firm has a 50-day simple moving average of $151.19.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings data on Friday, July 26th. The industrial products company reported $2.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.97 by $0.03. The business had revenue of $3.61 billion during the quarter, compared to analyst estimates of $3.73 billion. Illinois Tool Works had a net margin of 17.17% and a return on equity of 76.17%. The firm’s quarterly revenue was down 5.8% on a year-over-year basis. During the same quarter last year, the business earned $1.97 EPS. On average, sell-side analysts forecast that Illinois Tool Works will post 7.73 earnings per share for the current year.

A number of analysts have weighed in on ITW shares. Argus increased their target price on shares of Illinois Tool Works from $145.00 to $165.00 and gave the company a “buy” rating in a research report on Friday, April 26th. Zacks Investment Research downgraded shares of Illinois Tool Works from a “hold” rating to a “sell” rating and set a $154.00 price objective for the company. in a research report on Tuesday, July 9th. Credit Suisse Group raised their price objective on shares of Illinois Tool Works from $124.00 to $152.00 and gave the stock a “market perform” rating in a research report on Monday. UBS Group raised their price objective on shares of Illinois Tool Works from $150.00 to $154.00 and gave the stock a “neutral” rating in a research report on Monday. Finally, JPMorgan Chase & Co. raised shares of Illinois Tool Works from an “underweight” rating to a “neutral” rating and raised their price objective for the stock from $120.00 to $144.00 in a research report on Friday, April 26th. Five investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and two have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $142.33.

In other Illinois Tool Works news, EVP Steven L. Martindale sold 48,622 shares of the firm’s stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $155.88, for a total transaction of $7,579,197.36. Following the transaction, the executive vice president now directly owns 84,546 shares in the company, valued at approximately $13,179,030.48. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Michael R. Zimmerman sold 9,325 shares of the firm’s stock in a transaction on Thursday, July 25th. The shares were sold at an average price of $160.00, for a total value of $1,492,000.00. Following the transaction, the insider now owns 16,315 shares in the company, valued at $2,610,400. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 72,878 shares of company stock worth $11,313,386. Company insiders own 0.87% of the company’s stock.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.

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Dividend History for Illinois Tool Works (NYSE:ITW)

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