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Illinois Tool Raises Its Dividend 28%

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Pete Wright

Help is on the way for shareholders of Illinois Tool Works (ticker: ITW), who haven't had much to cheer about this year. The stock has a one-year return of 0.54%, dividends included.

The industrial company's board declared a quarterly dividend of $1.00 a share on Friday, compared with 78 cents previously, for a 28% increase, as well as authorizing a new share-buyback program.

The dividend will be paid on Oct. 9 to shareholders of record as of Sept. 28. Factoring in the higher quarterly disbursement, the stock would yield about 2.8% using its recent price of $140 and change.

Based in Glenview, Ill., near Chicago, Illinois Tool Works makes products such as adhesives, sealants, trusses, and beverage-packaging equipment.

It's been a tough year for industrial companies amid concerns about how cyclical they are and how long the economic recovery will last. Industrial firms in the S&P 500 are flat on the year in terms of stock performance.

The board authorized the repurchase of up to $3 billion of the company's common stock-or about 6% of its market capitalization.

At close to $141, shares were up nearly 1% in Monday's trading.

Write to Lawrence C. Strauss at lawrence.strauss@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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