Thursday, August 10, 2023

Dividend Increase - Illinois Tool Works Inc. (ITW)


Friday, August 4th the Board of Directors of Illinois Tool Works Inc. (ITW) announced a quarterly dividend increase of from $1.31 to $1.40 per share that’s payable October 12, 2023 to holders of record September 29, 2023. This represents a 6.87% increase over the last quarterly dividend.

The Board also approved a new share repurchase program that authorizes management to purchase up to $5 billion of the Company’s common stock over an open-ended period of time.

With current price $246.90 (yesterday's close), this raise brings their dividend yield to 2.27%.

ITW is a Dividend Champions with a 49 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 7.1, 6.9, 12.7 and 13.0 (Dividend Champions.xls)

Since I own 20 shares of ITW, this will increase my portfolio's projected annual net dividend income by $5.36.

I was expecting an increase of about 8%, so it was a little less than that, but of course I'm happy to take it.

This is the sixth dividend increase I've received from ITW since initiating a position in August 2018. (More here) During this period, the quarterly dividend has risen mightily from $ 0.78 to $ 1.40, or 79.5 percent.

This increase raises my YOC to 4.33%.

Summary of 2023 Dividend Increases / Cuts

Click here to see my portfolio holdings.

You can follow the development of my dividends here.

Full Disclosure: Long ITW

Thanks for stopping by!

No comments:

Post a Comment