Illinois Tool Works Inc. (NYSE:ITW) Increases Dividend to $1.61 Per Share

Key Points

• Illinois Tool Works Inc. has increased its quarterly dividend to $1.61 per share, marking a 7.3% rise from the previous dividend of $1.50.
• The company reported earnings of $2.58 per share for the last quarter, exceeding analysts' expectations, with a revenue of $4.05 billion which was a 0.6% year-over-year increase.
• Despite the positive dividend announcement, Illinois Tool Works stock experienced a 1.6% decline, closing at $251.91 with a market cap of approximately $73.81 billion.

Illinois Tool Works Inc. (NYSE:ITW - Get Free Report) announced a quarterly dividend on Friday, August 1st, RTT News reports. Investors of record on Tuesday, September 30th will be given a dividend of 1.61 per share by the industrial products company on Friday, October 10th. This represents a c) annualized dividend and a dividend yield of 2.6%. This is a 7.3% increase from Illinois Tool Works's previous quarterly dividend of $1.50.

Illinois Tool Works has a dividend payout ratio of 54.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Illinois Tool Works to earn $11.24 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 53.4%.

Illinois Tool Works Stock Down 1.6%

ITW traded down $4.06 on Friday, reaching $251.91. 1,236,431 shares of the company traded hands, compared to its average volume of 992,529. The stock's 50 day moving average price is $250.93 and its 200-day moving average price is $250.15. Illinois Tool Works has a 52-week low of $214.66 and a 52-week high of $279.13. The company has a market cap of $73.81 billion, a price-to-earnings ratio of 22.08, a PEG ratio of 5.68 and a beta of 1.09. The company has a debt-to-equity ratio of 2.40, a current ratio of 1.59 and a quick ratio of 1.16.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The industrial products company reported $2.58 EPS for the quarter, beating analysts' consensus estimates of $2.56 by $0.02. Illinois Tool Works had a net margin of 21.31% and a return on equity of 90.89%. The firm had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the previous year, the firm posted $2.54 earnings per share. The firm's revenue was up .6% on a year-over-year basis. On average, sell-side analysts expect that Illinois Tool Works will post 10.39 EPS for the current fiscal year.

About Illinois Tool Works

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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