Illinois Tool Works Inc. (NYSE:ITW) to Issue $1.61 Quarterly Dividend

Illinois Tool Works Inc. (NYSE:ITW) declared a quarterly dividend on Friday, May 8th. Stockholders of record on Tuesday, June 30th will be paid a dividend of 1.61 per share by the industrial products company on Friday, July 10th. This represents a c) dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, June 30th.

Illinois Tool Works has increased 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 dividend payout ratio of 58.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Illinois Tool Works to earn $12.26 per share next year, which means the company should continue to be able to cover its $6.44 annual dividend with an expected future payout ratio of 52.5%.

Illinois Tool Works Price Performance

Shares of ITW opened at $268.13 on Friday. The business has a 50-day moving average of $257.99 and a 200-day moving average of $264.03. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.19 and a quick ratio of 0.86. The company has a market capitalization of $77.14 billion, a price-to-earnings ratio of 24.90, a price-to-earnings-growth ratio of 4.60 and a beta of 1.01. Illinois Tool Works has a 1 year low of $238.82 and a 1 year high of $303.15.

Illinois Tool Works (NYSE:ITW) last released its earnings results on Thursday, April 30th. The industrial products company reported $2.66 earnings per share for the quarter, beating analysts’ consensus estimates of $2.57 by $0.09. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The business had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same quarter in the prior year, the firm posted $2.38 EPS. The company’s revenue for the quarter was up 4.6% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. As a group, equities research analysts anticipate that Illinois Tool Works will post 11.37 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Barclays decreased their price objective on shares of Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating for the company in a research report on Wednesday, April 1st. The Goldman Sachs Group reaffirmed a “sell” rating and set a $254.00 price target on shares of Illinois Tool Works in a research report on Thursday, April 30th. Wells Fargo & Company lifted their price objective on Illinois Tool Works from $245.00 to $255.00 and gave the stock an “underweight” rating in a research report on Monday, May 4th. Evercore cut their target price on Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. lowered their target price on Illinois Tool Works from $303.00 to $295.00 and set an “overweight” rating for the company in a report on Friday, May 1st. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, Illinois Tool Works has a consensus rating of “Reduce” and an average target price of $271.92.

Illinois Tool Works Company Profile

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.