Saturday, August 4, 2012

Illinois Tool Works Increases Dividend

ITW's board of directors approved a 5.56% increase in the quarterly dividend to $.38.  The latest increase extends ITW's streak to 49 straight years placing it in the prestigious dividend champions category of dividend growth stocks.  Not many corporations can boast longer streaks.  I'm a little bit disappointed that the increase was so small this year especially considering its yield is an anemic ~2.5%(pre-announcement).  The good news is that 5.56% beats inflation. 

At this point in time I'm not looking to add to my ITW position.  I'll hold out for a more enticing entry yield.


  1. Hey Compounding Income,

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    1. Hi DGI,

      I am more of a blogger than an article writer, I'm not sure my posts are the length or quality you are looking for. I will think it over for a few days and get back to you. I've read a lot of your work and it has helped me make better decisions. Thanks for the offer!


  2. I was also a bit disappointed in the size of the dividend increase from ITW, but like you said, at least it beats inflation. I'm also sitting on a 32% capital gain, so I guess I can't complain. :)

    1. Yep. In the past I thought about selling ITW around $57-58 but decided not to in the end. I think ITW is just being conservative. Maybe it will lead to another 49 years of increases, haha.