Illinois Tool Works Inc. (NYSE:ITW) Declares Quarterly Dividend of $1.50

by · The Markets Daily

Illinois Tool Works Inc. (NYSE:ITW – Get Free Report) announced a quarterly dividend on Friday, August 2nd, Wall Street Journal reports. Investors of record on Monday, September 30th will be given 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 dividend 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 increased 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 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 Price Performance

Shares of ITW traded up $1.97 on Friday, reaching $263.97. The stock had a trading volume of 1,066,451 shares, compared to its average volume of 1,101,868. The firm has a market capitalization of $78.37 billion, a PE ratio of 26.03, a PEG ratio of 4.09 and a beta of 1.10. The company has a quick ratio of 0.92, a current ratio of 1.30 and a debt-to-equity ratio of 2.17. The firm has a 50-day moving average of $247.31 and a 200 day moving average of $248.27. Illinois Tool Works has a twelve month low of $217.50 and a twelve month high of $271.15.

Illinois Tool Works (NYSE:ITW – Get Free Report) last released its quarterly earnings results on Tuesday, July 30th. The industrial products company reported $2.54 earnings per share for the quarter, topping analysts’ consensus estimates of $2.45 by $0.09. Illinois Tool Works had a return on equity of 99.74% and a net margin of 19.15%. The business had revenue of $4.03 billion for the quarter, compared to analysts’ expectations of $4.08 billion. During the same quarter in the prior year, the firm posted $2.41 EPS. The company’s revenue was down 1.2% compared to the same quarter last year. Sell-side analysts expect that Illinois Tool Works will post 10.18 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. Truist Financial reduced their target price on Illinois Tool Works from $283.00 to $281.00 and set a “buy” rating on the stock in a research note on Wednesday, July 31st. Evercore ISI reduced their target price on Illinois Tool Works from $251.00 to $246.00 and set an “in-line” rating on the stock in a research note on Monday, August 19th. JPMorgan Chase & Co. upped their target price on Illinois Tool Works from $267.00 to $270.00 and gave the company an “overweight” rating in a research note on Wednesday, July 31st. Jefferies Financial Group reduced their target price on Illinois Tool Works from $275.00 to $240.00 and set a “hold” rating on the stock in a research note on Thursday, July 11th. Finally, Wells Fargo & Company increased their price target 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. Three analysts have rated the stock with a sell rating, four have assigned a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $250.22.

Get Our Latest Analysis on ITW

About Illinois Tool Works

(Get Free Report)

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.

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