Saturday, August 11, 2018

Recent Buy - Illinois Tool Works Inc. (ITW)

Friday August 10, I bought 10 shares of Illinois Tool Works Inc. at $ 136.89 per share plus commission.

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment produces warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment, maintenance, and repair services. The Test & Measurement and Electronics segment produces equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; metal arc welding consumables and related accessories; and metal jacketing and other insulation products for various industrial and commercial applications. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment produces engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment offers beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the food and beverage, consumer durables, general industrial, printing and publishing, and industrial capital goods markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is headquartered in Glenview, Illinois.

ITW is a Dividend Champions with a 43 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 18.7, 16.1, 13.3 and 11.6. (Dividend Champions.xls) After the last dividend increase announcement, Illinois Tool Works now pays dividends of $ 1.00 per share normally in January, April, July and October.

Details of my purchase:

Some ratings for ITW:

    Yahoo: Mean Recommendation 2.6, 1y Target Est $ 152.93
    Reuters: Mean Rating 2.61
    Morningstar:  (***) 

At today's exchange rate, that purchase 10 shares of ITW will increase € 26.09 ($ 29.80) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 13,360.00. With purchase price $ 136.89 plus commission ($ 3.50) my starting yield on cost is 2.91%. After this acquisition, ITW's weight of my portfolio is about 0.27% and its share of future annual dividend income is approximately 0.20%. My purpose is to add more ITW to my portfolio if the price remains at these levels.

Click here to see my portfolio.

Full Disclosure: Long ITW 

Thanks for stopping by!


  1. itw still too expensive for me.

    1. Hi, yeah I would also like, that it would drop a bit more, so I could buy again.

      Thanks for visiting,

  2. Hawk -

    Damn! You got it $3 better than me, agh!!


  3. Bought some too a week ago. May add on soon since price got better. Long term great value imho.

  4. Well done, looks like a really solid buy. Wishing you all the best. Cheers