Illinois Tool Works Inc.

ITW

IndustrialsDividend King

$247.98

2.55%Fair Value

Illinois Tool Works Inc. (ITW) is a Industrials company that currently yields 2.55% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $214.19 and the overvaluation threshold at $306.72. Illinois Tool Works Inc. holds a quality score of 59/100 (Average), reflecting 9 consecutive years of dividend growth with a 59% payout ratio. The 5-year dividend CAGR stands at 7.1%.

ITW Dividend Yield History — Weiss Valuation

Underval. $214.19Overval. $306.72

Price

Undervalued band

Overvalued band

Why Now?

Illinois Tool Works Inc. is trading at a fair valuation relative to its dividend history.

Current yield 2.6% vs historical max 3.0% (86% of maximum).

9 years of uninterrupted dividends.

Conservative payout ratio of 59%.

Dividend Compounder (DRIP)

Initial Investment

Horizon (years)

Div. CAGR (%)

Year 1 Income

$273

Year 10 Income

$700

Yield on Cost

7.35%

Total Income

$4,510

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Quality Score

Average

Payout Ratio12/25

Dividend Streak12/25

Growth (CAGR 5Y)15/20

Yield vs History15/15

FCF Coverage5/15

Key Metrics

Current Price$247.98

Annual Dividend$6.33

Current Yield2.55%

Yield — Max (10Y)2.96%

Yield — Min (10Y)2.06%

Undervalued Below$214.19

Overvalued Above$306.72

Payout Ratio58.77%

CAGR Dividend 5Y7.1%

CAGR Dividend 10Y—

Years No Cut9y

consecutive years of dividend growth

In-depth analysis

→ ITW Dividend Analysis Article