Why Income Investors View Illinois Tool Works (ITW) as a Value Dividend Stock

Illinois Tool Works Inc. (NYSE:ITW) is included among the 11 Best Value Dividend Stocks to Buy Now.

Why Income Investors View Illinois Tool Works (ITW) as a Value Dividend Stock

Image by Steve Buissinne from Pixabay

Illinois Tool Works Inc. (NYSE:ITW) is a leading player in the global industrial manufacturing industry, operating across seven segments that range from automotive components to food service equipment. Its business model is centered on the “80/20 Front-to-Back” strategy, which focuses on the most profitable customers and products while driving ongoing operational improvements.

In recent years, Illinois Tool Works Inc. (NYSE:ITW) has emphasized efficiency, customer-driven innovation, and disciplined portfolio management. It sells off non-core units to sharpen its focus and allows its divisions the flexibility to create solutions tailored to customer needs. The company’s success depends on achieving growth above market levels in key areas, cutting costs effectively, and using capital in ways that deliver strong returns to shareholders.

On August 4, Illinois Tool Works Inc. (NYSE:ITW) declared a 7.3% hike in its quarterly dividend to $1.61 per share. Through this increase, the company stretched its dividend growth streak to 53 years, which makes it one of the best value stocks with dividends. The stock has a dividend yield of 2.47%, as of September 26.

While we acknowledge the potential of ITW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ITW and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Best Telecom Dividend Stocks to Buy for 2025 and 11 Best Bank Dividend Stocks to Buy.

Disclosure: None.