ITW vs RTX: Which Is the Better Dividend Stock?
As of Nov 5, 2026, RTX (RTX Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. ITW offers the higher yield at 2.34%, RTX has the higher dividend-safety score, and RTX looks like the better value (its fair-value estimate is 43% below its share price).
Key facts: ITW vs RTX
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Illinois Tool Works Inc. (ITW) has the higher forward dividend yield at 2.34%, versus 1.47% for RTX Corporation (RTX).
- As of Nov 5, 2026, SmarterDividends grades ITW's dividend safety A (88/100) and RTX's A (96/100).
- By SmarterDividends' count as of Nov 5, 2026, ITW has raised its dividend for 38 consecutive years and RTX for 33.
- As of Nov 5, 2026, ITW pays out 58% of its earnings as dividends and RTX pays out 46%.
- As of Nov 5, 2026, ITW's fair-value estimate is 43% below its share price and RTX's fair-value estimate is 43% below its share price, so RTX looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ITW vs RTX: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/itw-vs-rtx
| Metric | ITW | RTX |
|---|---|---|
| Forward yield | 2.34% | 1.47% |
| Annual dividend | $6.88 | $2.92 |
| Payout ratio | 58% | 46% |
| Years of growth | 38 yr | 33 yr |
| 5-yr dividend growth | 7.1% | 7.2% |
| 5-yr total return | 20% | 147% |
| Dividend safety score | 88 (A) | 96 (A) |
| Fair value estimate | $167.20 | $112.86 |
| Upside to fair value | -43% | -43% |
| Frequency | quarterly | quarterly |
| Market cap | $82.9B | $264.9B |
| P/E ratio | 26.0 | 31.9 |
Higher yield
ITW
2.34%
Safer dividend
RTX
Grade A
Faster growth
RTX
7.2%
Better value
RTX
-43% upside
ITW vs RTX — FAQ
Is ITW or RTX a better dividend stock?
On the data, RTX wins more head-to-head categories (5 vs 3). ITW offers the higher yield (2.34%), while RTX has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, ITW or RTX?
ITW has the higher forward dividend yield at 2.34%, versus 1.47% for RTX.
Is ITW or RTX safer?
RTX has the higher dividend-safety score (96/100 vs 88/100), reflecting stronger payout coverage and dividend-growth history.
Is ITW or RTX better value right now?
As of Nov 5, 2026, RTX looks like the better value: its fair-value estimate is 43% below its share price (overvalued). For ITW, its fair-value estimate is 43% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.