Illinois Tool Works Inc.

ITW|Industrials|Specialty Industrial Machinery|$265.04|P/E 25.5|MCap 77.4B|NYSE

Last update: Mar 25, 2026 at 04:53

About 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

2.32%

Annual Dividend

$6.22

Frequency

Quarterly

Payout Ratio

59.29%

FCF Payout Ratio

65.94%

Stock Price

$265.04

52-Week Range

$214.66 – $303.16

Dividend Health Score

Safe

Dividend Health Assessment

ITW's dividend appears safe and well-supported. Strengths include a 59.3% 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

Payout & Coverage

Safe

Earnings Payout Ratio

59.3%Safe

FCF Payout Ratio

65.9%Caution

CFO Payout Ratio

54.1%Caution

Interest Coverage

14.6xVery Safe

Balance Sheet

Caution

Net Debt / Total Assets

51.8%Warning

Current Ratio

1.2xCaution

Debt-to-Equity

285.5Caution

Profitability

Very Safe

Return on Equity

93.7%Very Safe

Operating Margin

26.8%Very Safe

Gross Margin

44.2%Safe

Profit Margin Stability

Very StableVery Safe

Dividend Track Record

Very Safe

Dividend Streak

Aristocrat (25+ yrs)Very Safe

Dividend Cut

NoneVery Safe

5-Year Dividend CAGR

7.1%Safe

Earnings Stability

GrowingVery Safe

Dividend History (2016–2025)

ITW annual dividend per share and yield history

Earnings & Profitability

ITW earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

March 31, 2026

Next 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.

Income Calculator

ITW Dividend Calculator

Number of Shares

Total Investment

$26,504.00

Annual Income

$622.00

Quarterly Income

$155.50

Monthly Income

$51.83

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Frequently Asked Questions

What is ITW's current dividend yield?

Illinois Tool Works Inc. (ITW) currently has a dividend yield of 2.32%, based on a stock price of $265.04 and an annual dividend of $6.22.

When is ITW's next dividend payment date?

ITW's next ex-dividend date is 2026-03-31 and the next payment date is 2026-04-09. You must own the stock before the ex-dividend date to receive the upcoming payment.

How much does ITW pay in dividends per year?

Illinois Tool Works Inc. paid $6.22 per share in annual dividends in 2025. The dividends are paid quarterly.

Has ITW been increasing its dividend?

Yes, Illinois Tool Works Inc. is a Dividend Aristocrat (25+ yrs). Its dividend has grown at a 5-year CAGR of 7.07%, a 3-year CAGR of 7.12% and a 10-year CAGR of 11.63%.

Is ITW's dividend safe?

Illinois Tool Works Inc. has a payout ratio of 59.29%. Its free cash flow payout ratio is 65.94%. A payout ratio below 60% is generally considered sustainable.

How is ITW's Dividend Health Score calculated?

The Dividend Health Score evaluates Illinois Tool Works Inc.'s dividend sustainability across four categories: Payout & Coverage (40%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (20%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for industrials companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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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 Health Score, 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.