Is Illinois Tool Work The Next One…?

Investment season does continue and at the moment I am purely sticking to my 5 stocks to add list. Before hitting the investment button I want to have a closer look at Illinois Tool Work to find out if it is worth of an investment at the current valuation or if it smarter to wait until it might be a bit cheaper.


Illinois Tool Works Inc. (ITW) is industrial products and equipment maker with operations in 57 countries worldwide. The company’s segments include Transportation, Industrial Packaging, Power Systems & Electronics, Food Equipment, Construction Products, Polymers & Fluids, Decorative Surfaces, and Other Products. Illinois Tool Works was founded in 1912 and is based in Glenview, Illinois. Illinois Tool Works is largely affected by raw material prices, as well as its ability to introduce new products. Illinois Tool Works has been increasing its dividend annually since 1964. The company is known as a dividend aristocrat, as it has increased its dividend for more than 25 years consecutively. Illinois Tool Works pays its dividend quarterly.

Dividend Data

ITW has increased their dividends for 55 years. This is quite an impressive streak of dividend increases which makes the stock one of the best dividend paying companies. The next impressive is also the nice increases in the past, it just shows the company is still able to deliver nice dividend increases, although it has been increasing their dividends for a long time already.

Dividend: Currently the company pays a yearly dividend of 4.00 USD, which equals a yield of 3.00%. The latest dividend increase was at 11.1%, which is quite above my goal of having a yearly increase of 7.5%.

Payout Ratio: The current payout ratio is at 52.4%, which is on very healthy level given the latest increase and the long history of dividend increases.

Stock Price

The share price of ITW is down by almost 26% on year to date basis. This fact makes stock look quite cheap at the moment with a price of 133.25 USD.

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Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding!

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