Illinois Tool Works hikes dividend by 7%

Dividend Aristocrat Illinois Tool Works (ITW) will raise its quarterly dividend by 7 percent to $1.22 per share in 2021. This follows a dividend hike of 6.5 percent to $1.14 per share in 2020 and will mark the 50th consecutive year of dividend increases by the industrial company.

The next dividend will be paid on Wednesday, October 14, 2021, to shareholders of record as of September 30, 2021. A new annual dividend rate of $4.88 per share yields 2.1% at a stock price of $227.73.

Annually the company pays approximately $1.54 billion in dividends to shareholders. Including this year's dividend hike that was just announced the average 5-year dividend growth for Illinois Tool Works drops from 15.7 to 13.4 percent.

Illinois Tool Works Inc. is a manufacturer of industrial products and equipment. Its products include fasteners, components, equipment, consumable systems, and a variety of specialty products and equipment. The company operates through seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products and Specialty Products. llinois Tool Works Inc. was founded in 1912 and incorporated in 1915.