Industrial tool manufacturer,
Illinois Tool Works Inc.
) announced a 15% increase in its quarterly dividend rate. The
company's share price gained 1.9%, closing the trading session at
$84.60 on Aug 8.
The revised quarterly dividend, as approved by Illinois Tool Works'
board of directors, now stands at 48.5 cents, up from 42 cents paid
earlier. On an annualized basis, the dividend has increased to
$1.94 from $1.68 per share.
The company will pay the new quarterly dividend on Oct 7, 2014 to
shareholders of record on Sep 30.
Illinois Tool Works follows a consistent policy of rewarding its
shareholders handsomely through dividend payments and share
buybacks. In the first half 2014, shares worth $2,905 million were
repurchased and dividends of $355 million were paid.
The company, in second-quarter 2014, completed its 50 million
accelerated share buyback program related to the divestiture of the
Industrial Packaging business. Exiting the second quarter, the
company was left with a $2.8 billion share repurchase
Illinois Tool Works' shareholder-friendly capital allocation
strategy indicates a healthy cash position. In second-quarter 2014,
the company generated cash of $573 million from its operating
activities, while cash and cash equivalents stood at $5,297 million
at the quarter end.
With a market capitalization of $34.2 billion, Illinois Tool Works
currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks
in the industry include Blount International Inc. (
), DXP Enterprises, Inc. (
) and IDEX Corporation (
). While Blount International sports a Zacks Rank #1 (Strong Buy),
both DXP Enterprises and IDEX Corporation hold a Zacks Rank #2
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ILL TOOL WORKS (ITW): Free Stock Analysis
DXP ENTERPRISES (DXPE): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
To read this article on Zacks.com click here.