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.

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, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.