Illinois Tool Works, a Dividend King with 62 consecutive years of dividend increases, has seen its stock fall 12% from its mid-February peak, presenting what some analysts view as a buying opportunity for income investors. The company's quarterly dividend has grown from $0.55 to $1.61 per share over the past decade, an annualized increase of more than 11%, and its payout ratio remains a sustainable 60% based on last year's GAAP earnings of $10.49 per share. Illinois Tool Works operates as a conglomerate of independent businesses producing automobile parts, commercial cooking equipment, industrial testing gear, and other products, and it has also reduced its outstanding share count by more than half since 2004 through buybacks, with $1.5 billion planned for this year. Analysts expect top-line growth of just over 3% this year and next, driving faster per-share earnings growth, though the stock is not considered a high-growth play.
The Coca-Cola Company
Procter & Gamble CompanyIllinois Tool Works IncStock down 12% from peak, analysts view as buying opportunity; strong dividend growth and buybacks support valuation.