Illinois Tool Works Inc (ITW) Dividend Analysis
Comprehensive dividend yield, safety, growth, and income analysis for ITW.
Illinois Tool Works Inc (ITW) pays a solid 2.42% dividend yield, or $6.88 per share annually at a stock price of $284.70. 37 consecutive years of dividend increases — qualifying as a Dividend Aristocrat (25+ years). The payout ratio of 58% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.6x. Dividend growth has been steady, with a 3-year CAGR of 7.1% and a 5-year CAGR of 7.1% (10-year: 11.3%). The most recent ex-dividend date was September 30, 2026.
Dividend Overview
Illinois Tool Works Inc (ITW) pays a solid 2.42% dividend yield, or $6.88 per share annually at a stock price of $284.70. ITW has increased its dividend for 37 consecutive years.
Dividend Safety
The payout ratio of 58% is well within sustainable levels, leaving room for future increases.
DRIP Projection
$10,000 invested in ITW with dividends reinvested would grow to approximately $13,917 after 10 years, generating roughly $671/year in dividend income. This projection assumes the current 2.42% yield and a 7.1% annual dividend growth rate with all dividends reinvested.
| Year | Portfolio Value | Annual Income | Total Return |
|---|---|---|---|
| Year 1 | $10,242 | $265 | +2% |
| Year 5 | $11,474 | $392 | +15% |
| Year 10 | $13,917 | $671 | +39% |
| Year 15 | $18,240 | $1,242 | +82% |
| Year 20 | $26,618 | $2,560 | +166% |
Assumes constant share price and reinvestment at current price. Actual results will vary. Try our DRIP Calculator for a customized projection with real historical data.
Payment Schedule
You must own shares before the ex-dividend date to receive the upcoming payment. Payment typically arrives 2-4 weeks after the ex-date.
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