Illinois Tool Works raises dividend for 63rd year, paying $1.61 quarterly, signaling strong income growth.

Illinois Tool Works (ITW) announced its 63rd consecutive annual dividend increase, paying $1.61 per share quarterly, up 7% from last year. This continues its status as a Dividend King, supported by strong free cash flow of $2.7 billion in 2025 and a coverage ratio of 1.52x. ITW's earnings and operating margins hit record levels in 2025, with management confident in sustaining growth and free cash flow conversion above 100% in 2026. Investors should watch the Q1 2026 earnings report on April 29 for updates on earnings guidance and potential dividend increases later in the year.