Illinois Tool Works Inc. (NYSE:ITW) to Issue $1.40 Quarterly Dividend

Illinois Tool Works Inc. (NYSE:ITW) announced a quarterly dividend on Friday, May 3rd, Wall Street Journal reports. Investors of record on Friday, June 28th will be paid a dividend of 1.40 per share by the industrial products company on Thursday, July 11th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.34%. The ex-dividend date is Friday, June 28th.

Illinois Tool Works has increased its dividend payment by an average of 7.0% per year over the last three years and has raised its dividend annually for the last 54 consecutive years. Illinois Tool Works has a dividend payout ratio of 51.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Illinois Tool Works to earn $10.89 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 51.4%.

Illinois Tool Works Stock Performance

Shares of ITW opened at $238.88 on Thursday. The company has a current ratio of 1.32, a quick ratio of 0.94 and a debt-to-equity ratio of 2.07. The company has a market capitalization of $71.28 billion, a price-to-earnings ratio of 23.56, a PEG ratio of 3.54 and a beta of 1.11. The stock has a 50 day moving average of $244.23 and a 200 day moving average of $254.14. Illinois Tool Works has a 12 month low of $217.50 and a 12 month high of $271.15.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Tuesday, April 30th. The industrial products company reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $0.09. Illinois Tool Works had a return on equity of 97.82% and a net margin of 19.07%. The company had revenue of $3.97 billion during the quarter, compared to the consensus estimate of $4.03 billion. During the same period last year, the business posted $2.33 earnings per share. Illinois Tool Works’s revenue was down 1.1% on a year-over-year basis. As a group, sell-side analysts forecast that Illinois Tool Works will post 10.22 earnings per share for the current year.

Insider Activity at Illinois Tool Works

In other news, Director David Byron Smith, Jr. bought 775 shares of Illinois Tool Works stock in a transaction on Thursday, June 13th. The shares were purchased at an average price of $238.82 per share, for a total transaction of $185,085.50. Following the acquisition, the director now owns 121,506 shares of the company’s stock, valued at $29,018,062.92. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.88% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Truist Financial raised their target price on Illinois Tool Works from $303.00 to $305.00 and gave the stock a “buy” rating in a research report on Wednesday, May 1st. StockNews.com lowered Illinois Tool Works from a “buy” rating to a “hold” rating in a research note on Friday, June 21st. Wells Fargo & Company dropped their price target on Illinois Tool Works from $255.00 to $244.00 and set an “underweight” rating for the company in a research note on Wednesday, May 1st. Stifel Nicolaus lifted their price target on Illinois Tool Works from $258.00 to $259.00 and gave the stock a “hold” rating in a research note on Wednesday, April 17th. Finally, Barclays dropped their price target on Illinois Tool Works from $229.00 to $217.00 and set an “underweight” rating for the company in a research note on Tuesday, June 4th. Four equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $256.44.

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.