Illinois Tool Works (ITW) Maintains Dividend Growth Through Business Cycles

Illinois Tool Works has been operating for much than a period and has built a concern that is hard to replicate. Its competitory borderline comes from scale, heavy lawsuit relationships, and a sizable intelligence spot portfolio with much than 17,000 granted and pending patents.

The company’s dividend past stands retired adjacent among dividend aristocrats. During the fiscal crisis, erstwhile payout ratios became stretched, Illinois Tool Works kept its dividend intact. Today, the payout ratio sits adjacent 62% of expected earnings, supra management’s semipermanent comfortableness zone. That suggests aboriginal dividend increases whitethorn way much intimately with net alternatively than outpace them. Even so, the institution has raised its dividend for 62 consecutive years.

Illinois Tool Works Inc. (NYSE:ITW) operates done 7 concern segments spanning industries specified arsenic automotive components and nutrient work equipment. All of them travel the company’s “80/20 Front-to-Back” operating model, which emphasizes focusing connected the astir profitable customers and products portion simplifying the rest.

Management has leaned heavy into operational discipline, targeted innovation, and portfolio reshaping. Non-core assets are sold, divisions are fixed autonomy to lick lawsuit problems, and superior is deployed with shareholder returns successful mind.

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Disclosure: None.