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Illinois Tool Works Inc. Dividends Banner

Illinois Tool Works Inc. Dividends

ITW Stock Analysis

Page title

Section title

Dividend Yield
2.34%
Payout Ratio
77.03%
Dividend Amount Per Share
-
Last Ex-Dividend Date
Dec 31, 2024

ITW Dividend Safety

ITW paid out 77.03% of its $3B earnings as dividends over the last 12 months.

Unsafe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

ITW's Dividend Payout Ratio of 77.03% is considered high for the Industrials sector, potentially restricting the funds available for reinvestment and threatening future growth.

Interest Rate Coverage

ITW's Interest Coverage Ratio of 14.811 indicates strong financial health with easy coverage of interest expenses.

Income Quality

ITW shows excellent income quality with a ratio of 1.197. This indicates high-quality earnings and low risk of dividend cuts.

ITW Dividend Growth

Illinois Tool Works Inc.(ITW) offers a dividend yield of 2.34% and pays $0 in dividends per share. Explore the historical dividend growth of ITW.

Dividend Stability

ITW has maintained stable dividend payments over the past 11 years with no cuts over 5%.

Dividend Growth

ITW's dividend payments have shown moderate growth, growing by 6.99% annually over the last 5 years.

Earnings Growth

ITW's earnings have shown moderate growth, growing by 3.242% annually over the last 5 years. Moderate growth indicates some stability but also potential uncertainty, suggesting that while dividends can continue, significant increases might be less likely.

ITW Dividend Yield Attractiveness

Illinois Tool Works Inc.(ITW) provides a dividend yield of 2.34%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

Peers

Industry

ITW

Sector

1.29%

1.76%

2.34%

2.90%

Dividend Yield

ITW's dividend yield of 2.34% is considered good compared to the sector average of 2.897%, providing a strong safety margin for investors.

ITW Cash Flow

Over the past 12 months, ITW generated $16B in revenue, produced $2B in free cash flow, and distributed $1B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

ITW's free cash flow has grown by 2.933% annually over the last 5 years, suggesting a moderate ability to generate cash and support dividend payments.

ITW Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Illinois Tool Works Inc.. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.