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

Illinois Tool Works Inc. (NYSE:ITW) 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) 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.

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.