Last update: May 9, 2026 at 09:32
Dividend Safety Rating
ITW's dividend appears safe and well-supported. Strengths include a 58.8% earnings payout ratio & 14.6x interest coverage. Areas of concern: 51.8% net debt / total assets. As a Dividend Aristocrat with 25+ consecutive years of increases, ITW has a proven commitment to shareholders.
Based on 15 of 15 metrics
Strengths
- Interest Coverage: 14.6xEarnings cover interest payments many times over.
- Return on Equity: 96.9%Strong return on equity reflects efficient profit generation.
- Operating Margin: 25.4%Healthy operating margin provides a wide buffer.
Risks
- Net Debt / Total Assets: 51.8%Net debt is high relative to total assets.
Payout & Coverage
SafeBalance Sheet
CautionProfitability
Very SafeDividend Track Record
Very SafeAbout Illinois Tool Works Inc.
Illinois Tool Works Inc. is a diversified global manufacturer specializing in engineered fasteners and components, equipment and consumable systems, and specialty products across multiple industries. The company operates through seven industry-leading segments that produce a wide array of industrial solutions, including arc welding equipment from Miller Electric, construction fasteners like Paslode and Tapcon, adhesives such as Permatex, test and measurement tools like Instron, and food equipment from Hobart. Its offerings extend to automotive components, restaurant appliances like dishwashers and ovens, and welding products essential for construction and manufacturing. Illinois Tool Works Inc. serves diverse sectors including food service, transportation, construction, testing, and specialty industrials, providing innovative, customer-focused solutions via approximately 80 decentralized business units worldwide. Founded in 1912 and headquartered in Glenview, Illinois, the company emphasizes an entrepreneurial culture and proprietary business model to deliver value-added products relied upon by professionals globally.
Dividend Overview
Dividend Yield
2.48%
Annual Dividend
$6.33
Frequency
Quarterly
Payout Ratio
58.77%
FCF Payout Ratio
65.94%
Stock Price
$254.76
52-Week Range
$238.82 – $303.16
Dividend History (2016–2025)
ITW annual dividend per share and yield history
Earnings & Profitability
ITW earnings per share and net profit margin
Key Dates
Last Ex-Dividend Date
March 31, 2026
Last Payment Date
April 9, 2026
Dividend Growth
3-Year Dividend CAGR
7.12%
5-Year Dividend CAGR
7.07%
10-Year Dividend CAGR
11.63%
3-Year Total Growth
22.92%
5-Year Total Growth
40.72%
10-Year Total Growth
200.48%
Dividend Aristocrat (25+ yrs)
This company has increased its dividend for 25+ consecutive years.
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Frequently Asked Questions
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How is ITW's Dividend Safety Rating calculated?
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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.
Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.
Market data provided by Twelve Data.