Is Illinois Tool Works Inc. (NYSE:ITW) Potentially Underrated?

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Attractive stocks have exceptional fundamentals. In the case of Illinois Tool Works Inc. (NYSE:ITW), there’s is a highly-regarded dividend payer with a a great history of delivering benchmark-beating performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Illinois Tool Works here.

Solid track record established dividend payer

In the previous year, ITW has ramped up its bottom line by 39%, with its latest earnings level surpassing its average level over the last five years. Not only did ITW outperformed its past performance, its growth also exceeded the Machinery industry expansion, which generated a 28% earnings growth. This is what investors like to see!

NYSE:ITW Income Statement, May 27th 2019
NYSE:ITW Income Statement, May 27th 2019

For those seeking income streams from their portfolio, ITW is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.

NYSE:ITW Historical Dividend Yield, May 27th 2019
NYSE:ITW Historical Dividend Yield, May 27th 2019

Next Steps:

For Illinois Tool Works, I’ve compiled three essential factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ITW’s future growth? Take a look at our free research report of analyst consensus for ITW’s outlook.
  2. Financial Health: Are ITW’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ITW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.