ITW Dividend Calculator
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Dividend growth rate (CAGR)
| Year | Start Balance | Start Shares | Share Price | Dividend / Share | Dividend Yield | Yield on Cost | Annual Dividend | Total Dividends | End Shares | End Balance |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $10,000 | 40.44 | $250.20 | $6.43 | 2.57% | 2.39% | $296.38 | $296.38 | 51.27 | $12,829 |
| 2 | $12,829 | 51.27 | $253.15 | $6.88 | 2.72% | 2.65% | $392.43 | $688.82 | 62.36 | $15,787 |
| 3 | $15,787 | 62.36 | $256.14 | $7.37 | 2.88% | 2.92% | $502.59 | $1,191 | 73.75 | $18,891 |
| 4 | $18,891 | 73.75 | $259.16 | $7.89 | 3.05% | 3.21% | $628.91 | $1,820 | 85.50 | $22,158 |
| 5 | $22,158 | 85.50 | $262.22 | $8.45 | 3.22% | 3.52% | $773.79 | $2,594 | 97.67 | $25,610 |
| 6 | $25,610 | 97.67 | $265.31 | $9.05 | 3.41% | 3.85% | $940.03 | $3,534 | 110.32 | $29,269 |
| 7 | $29,269 | 110.32 | $268.44 | $9.69 | 3.61% | 4.22% | $1,131 | $4,665 | 123.54 | $33,163 |
| 8 | $33,163 | 123.54 | $271.61 | $10.37 | 3.82% | 4.62% | $1,350 | $6,015 | 137.42 | $37,324 |
| 9 | $37,324 | 137.42 | $274.82 | $11.10 | 4.04% | 5.07% | $1,603 | $7,618 | 152.05 | $41,787 |
| 10 | $41,787 | 152.05 | $278.06 | $11.89 | 4.28% | 5.57% | $1,894 | $9,512 | 167.57 | $46,595 |
S&P 500 is included only as a total-portfolio-value reference — it isn't the most meaningful benchmark for income-focused strategies. The 10% baseline reflects the index's long-term nominal total return (price + dividends), a reference rather than a forecast.
Historical dividends per share
Over the last 5 years, ITW's dividend grew 7.07%/yr and its share price grew 1.18%/yr. Forward yield: 2.60%.
Based on dividends paid September 2011 to June 2026.
Recent dividends
| Ex-date | Cash amount | TTM yield | Fwd yield | Share price |
|---|---|---|---|---|
| 2026-06-30 | $1.61 | 2.60% | 2.60% | $247.28 |
| 2026-03-31 | $1.61 | 2.43% | 2.47% | $260.29 |
| 2025-12-31 | $1.61 | 2.53% | 2.61% | $246.30 |
| 2025-09-30 | $1.61 | 2.34% | 2.47% | $260.76 |
| 2025-06-30 | $1.50 | 2.43% | 2.43% | $247.25 |
| 2025-03-31 | $1.50 | 2.38% | 2.42% | $248.01 |
| 2024-12-31 | $1.50 | 2.29% | 2.37% | $253.56 |
| 2024-09-30 | $1.50 | 2.17% | 2.29% | $262.07 |
| 2024-06-28 | $1.40 | 2.36% | 2.36% | $236.96 |
| 2024-03-27 | $1.40 | 2.05% | 2.09% | $268.21 |
| 2023-12-28 | $1.40 | 2.07% | 2.14% | $261.88 |
| 2023-09-28 | $1.40 | 2.30% | 2.41% | $232.05 |
Source: Polygon.io. Last 12 dividend distributions, most recent first. TTM yield = sum of this payment + (frequency − 1) prior payments ÷ share price on ex-date. Forward yield = this payment × detected payout frequency ÷ share price on ex-date.
About ITW
Illinois Tool Works — ticker ITW — is a diversified global industrial company headquartered in Glenview, Illinois. The business produces engineered fasteners, components, equipment, and specialty consumables sold to a broad set of end markets, including automotive original equipment, food equipment, test and measurement, welding, polymers and fluids, construction products, and specialty products. The seven reporting segments share a common operating model that the company refers to as the 80/20 framework, which concentrates resources on the highest-margin, highest-growth-potential customers and product lines within each business unit.
ITW has raised its dividend every year for more than four decades, placing it well inside the Dividend Aristocrat tier and within striking distance of Dividend King status. Annual hikes have historically been mid-to-high single digits, with occasional larger step-ups when share repurchase programs are sized down or when free cash flow exceeds the capital allocation framework's bands. The dividend share of free cash flow has typically tracked in the forty to fifty percent range, leaving meaningful headroom for capital returns to take the form of both dividends and buybacks across the cycle.
What drives the dividend
The dividend is supported by free cash flow generation that has been structurally above corporate-average levels for industrial companies of similar revenue. The 80/20 operating model — which trims unprofitable products and concentrates investment in higher-margin segments — produces operating margins meaningfully above industrial peers. That margin advantage flows through to the cash conversion profile and ultimately to the dividend's affordability and growth runway. The seven-segment diversification reduces the cyclicality that a single-end-market industrial would carry, although ITW is still meaningfully exposed to automotive and construction cycles.
Why income investors consider ITW
A growth-oriented dividend holder is typically attracted to ITW for the combination of multi-decade hike track record, sector-leading operating margins, and a clearly articulated capital-return framework that explicitly targets returning roughly 100 percent of free cash flow to shareholders across the cycle via dividends and buybacks. The yield is generally modest compared with utility peers because the dividend has historically grown faster than the share price has compounded. ITW often pairs with consumer-staples Aristocrats in income portfolios to combine industrial dividend growth with defensive consumer dividend continuity.
Hypothetical scenarios
Scenario 1: ITW as a diversified-industrials dividend grower
The natural comparison set for ITW within the dividend universe includes other large-cap multi-industry names with multi-decade dividend streaks — Emerson Electric, Honeywell, Dover, and Parker Hannifin among them. All share the structural shape of a portfolio of engineered industrial businesses serving multiple end markets. What sets ITW apart inside that group is the operating margin profile produced by the 80/20 framework: ITW's segment-level operating margins have run consistently above the diversified industrials average, and the company has chosen to redeploy a meaningful share of the excess cash conversion into rising dividends rather than acquisitions.
The practical implication for a dividend-focused holder is that ITW typically offers a lower starting yield but a faster historical dividend growth rate than higher-yielding industrial peers. Over a long compounding horizon — 15 to 25 years — that profile can produce a yield-on-cost that ultimately exceeds what a higher-starting-yield slower-grower delivers. Holders who run both an ITW position and a slower-growth higher-yield industrial position can produce a blended income line with elements of both shapes. The calculator on this page can be run at ITW's actual mid-to-high single digit historical dividend growth rate as one comparison, and at a slower three to four percent rate as a sensitivity to see how much of the projected income depends on the growth assumption.
Scenario 2: the 80/20 operating model as a structural feature
ITW's operating margin advantage is not an accident of the cycle; it is the product of a deliberate operating framework that the company refers to as 80/20. The principle is that within each business unit, roughly twenty percent of customers and products produce roughly eighty percent of the profit, and the operating teams are explicitly instructed to concentrate resources on that twenty percent while trimming or repricing the less profitable activity. The result over multi-year windows has been a structural operating margin two to four percentage points above the diversified industrials average.
For a dividend-projection exercise, the relevant implication is that the historical dividend growth rate is anchored partly in this operating model rather than purely in revenue growth. If the framework continues to produce above-average margin expansion alongside flat or modest revenue growth, the dividend can continue to compound at the historical pace. If margin expansion stalls or reverses, the historical dividend growth rate becomes harder to extrapolate. This is the structural feature that distinguishes a long-horizon ITW projection from a pure-cyclical-industrial projection, and it is the dimension on which the company's investor communications most frequently focus.
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Sources & methodology
Dividend history and price data come from Polygon.io's reference and aggregates endpoints. Forward yield is computed as the sum of the most recent four cash distributions divided by the previous-close share price. The dividend growth rate shown on this page is the compound annual growth rate of total annual distributions across the available history in this snapshot.
Last updated: 2026-05-30.
Information here is for educational purposes only and does not constitute investment advice. Past dividend history does not guarantee future payments. Verify all figures with the issuer or a registered financial advisor before making investment decisions.
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