LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors has a free review on Illinois Tool Works Inc. (NYSE: ITW) following the Company's announcement that it will begin trading ex-dividend on December 28, 2017. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on December 27, 2017. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on ITW:

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Dividend Declared

On October 27, 2017, Illinois Tool Works' Board of Directors declared a dividend on the company's common stock of $0.78 per share for the fourth quarter of 2017. The dividend equates to $3.12 per share on a full-year basis. The dividend will be paid on January 10, 2018, to shareholders of record as of December 29, 2017.

Illinois Tool Works' indicated dividend represents a yield of 1.87%, which is substantially above the average dividend yield of 1.15% for the Industrial Goods sector. The Company has raised dividend for fifty-three consecutive years.

Dividend Insights

Illinois Tool Works has a dividend payout ratio of 46.6%, which denotes that the Company spends approximately $0.47 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts' estimates, Illinois Tool Works is forecasted to report earnings of $7.22 per share for the next year, which is substantially above the Company's annualized dividend of $3.12 per share.

As of September 30, 2017, Illinois Tool Works' cash and cash equivalents totaled $2.79 billion compared to $2.47 billion as on December 31, 2016. For the nine months ended September 30, 2017, the Company's net cash provided used in operating activities totaled $780 million compared to net cash provided by operating activities of $624 million for the year ago period. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.

Recent Development for Illinois Tool Works

On December 01, 2017, Illinois Tool Works announced that through the continued execution of its successful strategy, the Company is targeting the following annual performance goals for the five-year period from 2018 to 2022:

  • 25+% operating margin;
  • 20+% after-tax Return on Invested Capital;
  • Organic growth of 3% to 5%;
  • 8% to 10% Earnings Per Share growth;
  • Free cash flow of 100+% of net income;
  • Dividend payout of approximately 50% of free cash flow by 2020 (versus 43% currently).

Illinois Tool Works also initiated 2018 guidance at the event and expects 2018 GAAP EPS to be in the range of $7.05 to $7.25, organic revenue growth of 3% to 4%, and operating margin of 25% to 25.5%. Additionally, the Company reaffirmed its 2017 full-year GAAP EPS guidance of $6.62 to $6.72, a year-over-year increase of 17% at the mid-point.

About Illinois Tool Works

Illinois Tool Works is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $13.6 billion in 2016. The Company's seven industry-leading segments leverage its unique Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required.

Illinois Tool Works was founded in 1912 and is headquartered in Glenview, Illinois.

Stock Performance Snapshot

December 26, 2017 - At Tuesday's closing bell, Illinois Tool Works' stock was slightly down 0.02%, ending the trading session at $167.10.

Volume traded for the day: 524.05 thousand shares.

Stock performance in the last month - up 4.54%; previous three-month period - up 13.60%; past twelve-month period - up 33.84%; and year-to-date - up 36.45%

After yesterday's close, Illinois Tool Works' market cap was at $57.64 billion.

Price to Earnings (P/E) ratio was at 25.62.

The stock has a dividend yield of 1.87%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 0.2% at the end of the session.

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