Illinois Tool Works Inc.
ITW38 yrs growthIndustrials · Stock · quarterly payer
Forward Yield
2.19%
Annual Dividend
$6.44
Payout Ratio
58%
5-Yr Growth
7.1%
Ex-Date
Jun 30, 2026
Frequency
Quarterly
Summary
As of August 2026, Illinois Tool Works Inc. (ITW) yields 2.19% ($6.44 per share annually), with a blended fair-value estimate of $166.63 — -42% downside, so it screens as overvalued. Dividend safety grade: A (87/100). 38 years of dividend growth.
Is ITW a good dividend stock?
YesIllinois Tool Works Inc. (ITW) pays a quarterly dividend yielding 2.19% ($6.44/yr), with 38 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- Dividend Aristocrat — 38 consecutive years of growth
- Never cut its dividend on record
- Comfortable payout ratio (58%)
- Strong 7.1% 5-yr dividend growth
- Top-tier dividend safety score
Risks
- Single-stock concentration risk — diversify
Key Data
- Dividend Yield
- 2.19%
- Payout Ratio
- 58%
- Annual Dividend
- $6.44
- 5-Yr Avg Growth
- 7.1%
- Ex-Dividend Date
- Jun 30, 2026
- Years of Growth
- 38
- Frequency
- quarterly
- Beta
- 1.00
- Market Cap
- $84.5B
- P/E Ratio
- 26.7
- 5-Yr Total Return
- 27%
- 52-Week Range
- $238.82 – $303.16
- Dividend Safety
- A · 87/100
- Ever Cut?
- No
Frequently Asked Questions
ITW Price — Last 12 Months
Daily close
Price Return
1 Year
+12%
3 Years
+20%
5 Years
+27%
52-Week Range
$238.82 – $303.16
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is ITW worth?
Overvaluedmedium confidenceOur blended fair-value estimate for Illinois Tool Works Inc. is $166.63 per share, versus a market price of $286.95. That implies 42% of downside.
Fair Value
$166.63
Current Price
$286.95
Downside
-42%
Margin of Safety
-72%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 40.0% annual free-cash-flow growth. We model 7.7% — so the price already assumes faster growth than we think is likely.
Assumptions: 9.4% discount rate (CAPM), 7.7% stage-1 growth, 2.5% terminal growth, $11.05 EPS, $6.44 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
ITW Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 30, 2026 | — | $1.6100 | regular |
| Mar 31, 2026 | — | $1.6100 | regular |
| Dec 31, 2025 | — | $1.6100 | regular |
| Sep 30, 2025 | — | $1.6100 | regular |
| Jun 30, 2025 | — | $1.5000 | regular |
| Mar 31, 2025 | — | $1.5000 | regular |
| Dec 31, 2024 | — | $1.5000 | regular |
| Sep 30, 2024 | — | $1.5000 | regular |
| Jun 28, 2024 | — | $1.4000 | regular |
| Mar 27, 2024 | — | $1.4000 | regular |
| Dec 28, 2023 | — | $1.4000 | regular |
| Sep 28, 2023 | — | $1.4000 | regular |
| Jun 29, 2023 | — | $1.3100 | regular |
| Mar 30, 2023 | — | $1.3100 | regular |
Income Calculator
At $6.44 / yr per share
