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

Illinois Tool Works Inc. (NYSE:ITW) announced a quarterly dividend on Thursday, October 24th,Zacks Dividends reports. Investors of record on Tuesday, December 31st will be given a dividend of 1.50 per share by the industrial products company on Friday, January 10th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.34%. The ex-dividend date is Tuesday, December 31st.

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 every year for the last 55 years. Illinois Tool Works has a payout ratio of 56.1% meaning its dividend is sufficiently covered by earnings. Analysts expect Illinois Tool Works to earn $10.64 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 56.4%.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $256.55 on Friday. The firm has a market capitalization of $75.76 billion, a PE ratio of 22.19, a P/E/G ratio of 4.22 and a beta of 1.10. Illinois Tool Works has a 52 week low of $232.77 and a 52 week high of $279.13. The firm’s 50-day simple moving average is $267.48 and its 200 day simple moving average is $254.26. The company has a quick ratio of 0.97, a current ratio of 1.36 and a debt-to-equity ratio of 1.94.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Wednesday, October 30th. The industrial products company reported $2.65 EPS for the quarter, beating the consensus estimate of $2.53 by $0.12. Illinois Tool Works had a net margin of 21.66% and a return on equity of 97.06%. The business had revenue of $3.97 billion for the quarter, compared to analyst estimates of $4.02 billion. During the same period in the prior year, the business earned $2.55 earnings per share. The company’s quarterly revenue was down 1.6% on a year-over-year basis. On average, equities research analysts predict that Illinois Tool Works will post 10.13 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently issued reports on ITW. Truist Financial upped their price objective on Illinois Tool Works from $312.00 to $318.00 and gave the company a “buy” rating in a research report on Thursday, December 19th. Evercore ISI cut shares of Illinois Tool Works from an “in-line” rating to an “underperform” rating and lifted their price target for the company from $246.00 to $255.00 in a research report on Wednesday, November 13th. Robert W. Baird boosted their price target on Illinois Tool Works from $240.00 to $250.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Barclays upgraded Illinois Tool Works from an “underweight” rating to an “equal weight” rating and lifted their price objective for the stock from $230.00 to $270.00 in a report on Thursday, December 5th. Finally, Jefferies Financial Group boosted their price objective on Illinois Tool Works from $255.00 to $290.00 and gave the company a “hold” rating in a report on Friday, December 6th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Illinois Tool Works has a consensus rating of “Hold” and an average price target of $268.50.

Illinois Tool Works Company Profile

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.