Illinois Tool Works (ITW) Dividend
38 yrs growthIllinois Tool Works Inc. · Industrials · Specialty Industrial Machinery · quarterly payer
As of Nov 5, 2026, Illinois Tool Works (ITW) pays a quarterly dividend of $1.72 per share, or $6.88 a year, a 2.34% yield at its $291.59 share price. The next ex-dividend date is Dec 31, 2026, paid Jan 15, 2027. It has raised its dividend 38 years in a row and has a dividend safety grade of A.
Forward Yield
2.34%
Annual Dividend
$6.88
Payout Ratio
58%
5-Yr Growth
7.1%
Ex-Date
Dec 31, 2026
Frequency
Quarterly
Key facts about ITW's dividend
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Illinois Tool Works Inc. (ITW) has a forward dividend yield of 2.34%, based on an annual dividend of $6.88 per share and a share price of $291.59.
- As of Nov 5, 2026, ITW's dividend safety grade from SmarterDividends is A (88 out of 100), which rates the dividend as very safe.
- By SmarterDividends' count, Illinois Tool Works Inc. (ITW) has raised its dividend for 38 consecutive years as of Nov 5, 2026, which makes it a Dividend Aristocrat by the 25-year definition.
- ITW has never cut its regular dividend in the payment history SmarterDividends has on record.
- ITW's next ex-dividend date is Dec 31, 2026, with payment on Jan 15, 2027. Shares must be owned before that date to receive the dividend.
- As of Nov 5, 2026, ITW pays out 58% of its trailing 12-month earnings as dividends (its payout ratio).
- ITW's dividend has grown at an average rate of 7.1% a year over the past five years.
- As of Nov 5, 2026, SmarterDividends' blended fair-value estimate for ITW is $167.20 per share, 43% below the $291.59 share price, so ITW screens as overvalued.
- Illinois Tool Works Inc. (ITW) pays its dividend quarterly, 4 times a year.
- Illinois Tool Works Inc. (ITW) has raised its regular dividend 40 times and cut it 1 time across the 160 payments on record since 1987. Its most recent change was a 6.8% increase to $1.72 per share, going ex-dividend on Sep 30, 2026. The last cut went ex-dividend on Dec 27, 2002.
- Illinois Tool Works (ITW) has declared its first higher dividend of the year in August in 5 of the last 5 years; its most recent raise, 6.8%, was declared on Aug 7, 2026.
Cite this page
SmarterDividends, "ITW Dividend: Yield, Safety Grade & Next Ex-Date," updated Nov 5, 2026, https://smarterdividends.com/stocks/ITW
Is ITW a good dividend stock?
YesIllinois Tool Works Inc. (ITW) pays a quarterly dividend yielding 2.34% ($6.88/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
- 2.34%
- Payout Ratio
- 58%
- Annual Dividend
- $6.88
- 5-Yr Avg Growth
- 7.1%
- Ex-Dividend Date
- Dec 31, 2026
- Years of Growth
- 38
- Frequency
- quarterly
- Beta
- 0.94
- Market Cap
- $82.9B
- P/E Ratio
- 26.0
- 5-Yr Total Return
- 20%
- 52-Week Range
- $238.82 – $303.16
- Dividend Safety
- A · 88/100
- Ever Cut?
- No
ITW dividend raises and cuts
Illinois Tool Works Inc. (ITW) has raised its regular dividend 40 times and cut it 1 time across the 160 payments on record since 1987. Its most recent change was a 6.8% increase to $1.72 per share, going ex-dividend on Sep 30, 2026. The last cut went ex-dividend on Dec 27, 2002.
| Ex-date | Change | Old → new | Move |
|---|---|---|---|
| Sep 30, 2026 | Raise | $1.61 → $1.72 | +6.8% |
| Sep 30, 2025 | Raise | $1.50 → $1.61 | +7.3% |
| Sep 30, 2024 | Raise | $1.40 → $1.50 | +7.1% |
| Sep 28, 2023 | Raise | $1.31 → $1.40 | +6.9% |
| Sep 29, 2022 | Raise | $1.22 → $1.31 | +7.4% |
| Sep 29, 2021 | Raise | $1.14 → $1.22 | +7.0% |
| Sep 29, 2020 | Raise | $1.07 → $1.14 | +6.5% |
| Sep 27, 2019 | Raise | $1.00 → $1.07 | +7.0% |
| Sep 27, 2018 | Raise | $0.780 → $1.00 | +28.2% |
| Sep 28, 2017 | Raise | $0.650 → $0.780 | +20.0% |
| Sep 28, 2016 | Raise | $0.550 → $0.650 | +18.2% |
| Sep 28, 2015 | Raise | $0.485 → $0.550 | +13.4% |
Show all 41 changes since 1987
| Ex-date | Change | Old → new | Move |
|---|---|---|---|
| Sep 26, 2014 | Raise | $0.420 → $0.485 | +15.5% |
| Sep 26, 2013 | Raise | $0.380 → $0.420 | +10.5% |
| Sep 26, 2012 | Raise | $0.360 → $0.380 | +5.6% |
| Sep 28, 2011 | Raise | $0.340 → $0.360 | +5.9% |
| Sep 28, 2010 | Raise | $0.310 → $0.340 | +9.7% |
| Sep 26, 2008 | Raise | $0.280 → $0.310 | +10.7% |
| Sep 26, 2007 | Raise | $0.210 → $0.280 | +33.3% |
| Sep 27, 2006 | Raise | $0.165 → $0.210 | +27.3% |
| Sep 28, 2005 | Raise | $0.140 → $0.165 | +17.9% |
| Sep 28, 2004 | Raise | $0.120 → $0.140 | +16.7% |
| Sep 26, 2003 | Raise | $0.115 → $0.120 | +4.3% |
| Mar 27, 2003 | Raise | $0.110 → $0.115 | +4.5% |
| Dec 27, 2002 | Cut | $0.115 → $0.110 | −4.3% |
| Sep 26, 2002 | Raise | $0.110 → $0.115 | +4.5% |
| Sep 26, 2001 | Raise | $0.100 → $0.110 | +10.0% |
| Sep 27, 2000 | Raise | $0.0900 → $0.100 | +11.1% |
| Sep 28, 1999 | Raise | $0.0750 → $0.0900 | +20.0% |
| Sep 28, 1998 | Raise | $0.0600 → $0.0750 | +25.0% |
| Jun 26, 1997 | Raise | $0.0475 → $0.0600 | +26.3% |
| Sep 26, 1996 | Raise | $0.0425 → $0.0475 | +11.8% |
| Sep 27, 1995 | Raise | $0.0375 → $0.0425 | +13.3% |
| Sep 26, 1994 | Raise | $0.0325 → $0.0375 | +15.4% |
| Nov 1, 1993 | Raise | $0.0300 → $0.0325 | +8.3% |
| Nov 2, 1992 | Raise | $0.0275 → $0.0300 | +9.1% |
| Aug 12, 1991 | Raise | $0.0225 → $0.0275 | +22.2% |
| Aug 3, 1990 | Raise | $0.0188 → $0.0225 | +20.0% |
| Aug 1, 1989 | Raise | $0.0150 → $0.0188 | +25.0% |
| Jul 29, 1988 | Raise | $0.0125 → $0.0150 | +20.0% |
| Jul 31, 1987 | Raise | $0.0113 → $0.0125 | +11.1% |
Frequently Asked Questions
Is ITW a good dividend stock?
Yes. Illinois Tool Works Inc. (ITW) pays a quarterly dividend yielding 2.34% ($6.88/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.
Is ITW undervalued?
Based on a blend of discounted cash flow, a dividend-discount model and an earnings-multiple estimate, ITW's fair value is about $167.20 versus a $291.59 share price — so it looks overvalued (-43% vs. fair value).
Is ITW's dividend safe?
ITW has a dividend-safety grade of A (88/100), based on its payout coverage, free-cash-flow, 38-year growth streak, a clean no-cut history, debt and yield-versus-history.
What is ITW's fair value?
Our blended fair-value estimate for ITW is about $167.20 per share, about 43% below the current $291.59 price — combining a discounted cash flow, a dividend-discount model and an earnings multiple.
Is ITW a buy, hold, or sell?
We don't issue formal ratings, but on the data ITW screens as "yes" and overvalued. Illinois Tool Works Inc. (ITW) pays a quarterly dividend yielding 2.34% ($6.88/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. This is research for your own analysis, not investment advice.
Will ITW cut its dividend?
ITW earns a dividend-safety grade of A (88/100), with no dividend cut on record. A higher score means lower cut risk based on payout coverage, cash flow and history — but no score guarantees a dividend.
Does ITW pay a dividend?
Yes. Illinois Tool Works Inc. pays a quarterly dividend of about $6.88 per share annually, a forward yield of roughly 2.34%.
How much dividend does 100 shares of ITW pay?
At $6.88 per share a year, 100 shares of ITW pay $688.00 a year in dividends before tax, about $172.00 each quarter. Buying them costs about $29,159 at the Nov 5, 2026 price.
What is ITW's dividend yield?
As of Nov 5, 2026, ITW's forward dividend yield is 2.34%, based on a $6.88 annual dividend and a $291.59 share price.
What is ITW's dividend per share?
As of Nov 5, 2026, ITW pays $6.88 per share per year, distributed on a quarterly basis.
What is ITW's dividend payout ratio?
As of Nov 5, 2026, ITW's payout ratio is 58% of trailing 12-month earnings — a comfortable level that leaves room to keep raising the dividend.
How many years has ITW grown its dividend?
As of Nov 5, 2026, ITW has increased its dividend for 38 consecutive years.
When is the next ITW ex-dividend date?
As of Nov 5, 2026, the next ex-dividend date on record for ITW is Dec 31, 2026.
ITW Price — Last 12 Months
Daily close
Price Return
1 Year
+12%
3 Years
+15%
5 Years
+20%
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?
Overvaluedhigh confidenceOur blended fair-value estimate for Illinois Tool Works Inc. is $167.20 per share, versus a market price of $291.59. That implies 43% of downside.
Fair Value
$167.20
Current Price
$291.59
Downside
-43%
Margin of Safety
-74%
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 14.9% annual free-cash-flow growth. We model 6.4% — so the price already assumes faster growth than we think is likely.
Assumptions: 9.2% discount rate (CAPM), 6.4% growth for five years fading to 2.5% over the next five, $11.21 EPS, $6.88 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
Full ITW dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 30, 2026 | Oct 9, 2026 | $1.7200 | regular |
| Jun 30, 2026 | Jul 10, 2026 | $1.6100 | regular |
| Mar 31, 2026 | Apr 9, 2026 | $1.6100 | regular |
| Dec 31, 2025 | Jan 9, 2026 | $1.6100 | regular |
| Sep 30, 2025 | Oct 10, 2025 | $1.6100 | regular |
| Jun 30, 2025 | Jul 11, 2025 | $1.5000 | regular |
| Mar 31, 2025 | Apr 10, 2025 | $1.5000 | regular |
| Dec 31, 2024 | Jan 10, 2025 | $1.5000 | regular |
| Sep 30, 2024 | Oct 11, 2024 | $1.5000 | regular |
| Jun 28, 2024 | Jul 11, 2024 | $1.4000 | regular |
| Mar 27, 2024 | Apr 11, 2024 | $1.4000 | regular |
| Dec 28, 2023 | Jan 11, 2024 | $1.4000 | regular |
| Sep 28, 2023 | Oct 12, 2023 | $1.4000 | regular |
| Jun 29, 2023 | Jul 13, 2023 | $1.3100 | regular |
Income Calculator
At $6.88 / yr per share
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