Illinois Tool Works Inc.
ITWIllinois Tool Works Inc. (ITW) is a Industrials company that currently yields 2.50% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $217.94 and the overvaluation threshold at $296.27. Illinois Tool Works Inc. holds a quality score of 62/100 (Good), reflecting 56 consecutive years of dividend growth with a 58% payout ratio. The 5-year dividend CAGR stands at 7.1%.
ITW Dividend Yield History — Weiss Valuation
Distance to undervalued
Waiting for a better entry
Needs about 15.4% downside to reach the Weiss buy zone
Undervaluation starts near $217.94, where the annual dividend would imply roughly 2.95% yield. That is 0.45% above today's yield.
Buy-zone price
$217.94
Target yield
2.95%
Research checklist
What to clear before buying the yield
Updated Oct 1, 2026
Dividend durability
56YLong dividend history supports a deeper look.
Earnings payout
58%Earnings coverage leaves room for noise.
Cash payout
81%Free cash flow coverage supports the payment.
Dividend growth
7.1%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-09-30 → 2026-10-01
Price
-3.5%$267.07 → $257.61
Price fell 3.5% since the prior snapshot.
Why Now?
Illinois Tool Works Inc. is trading at a fair valuation relative to its dividend history.
Current yield 2.5% vs historical max 3.3% (76% of maximum).
14 consecutive years without a dividend cut.
Conservative payout ratio of 58%.
What matters now
Read the signal before the headline yield
Valuation is neutral here: quality has to do more of the work than entry price.
The 62/100 quality score calls for selective follow-up, not autopilot.
Start by checking whether payout coverage and business durability still support the dividend.
ITW Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$268
Year 10 Income
$681
Yield on Cost
7.15%
Total Income
$4,401
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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Dividend income log · Yield on cost · DRIP cost basis · Tax reports
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗ITW Dividend Quality Score
Quality Score
Good
Key Metrics
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