Illinois Tool Raises Its Dividend 28%
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.
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