ITW Announces 7% Dividend Increase and $6 Billion Share Repurchase Program

Illinois Tool Works (NYSE: ITW) announced that its board approved a 7% increase in the regular annual cash dividend from $6.44 to $6.88 per share.

Rhea-AI Summary

Illinois Tool Works (NYSE: ITW) announced that its board approved a 7% increase in the regular annual cash dividend from $6.44 to $6.88 per share. The new quarterly dividend of $1.72 is payable on October 9, 2026, to shareholders of record on September 30, 2026.

The board also authorized a new $6 billion share repurchase program, with timing and volume of buybacks to be determined by management as part of the company’s stated disciplined capital allocation strategy.

Positive

• Dividend raised 7% from $6.44 to $6.88 per share annually
• Q4 2026 dividend set at $1.72 per share, payable October 9, 2026
• $6 billion new share repurchase authorization approved by the board
• 63rd consecutive annual dividend increase highlights long-running payout track record

Negative

• None.

Argus Aug 7 session

+0.67% close to close 0.6x rel. volume Open Argus

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News Market Reaction – ITW

On Aug 7, the day this news came out, ITW closed 0.67% above the previous close.

Data tracked by StockTitan Argus for the Aug 7 session.

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GLENVIEW, Ill., Aug. 07, 2026 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today announced that its Board of Directors has approved a seven percent increase in the company’s regular annual cash dividend from $6.44 to $6.88 per share. The increase is effective with the fourth-quarter dividend of $1.72, which was declared today, and is payable on October 9, 2026, to holders of record at the close of business on September 30, 2026.

In addition, ITW announced that its Board of Directors has approved a new authorization for the company to repurchase up to $6 billion of its common stock as part of its disciplined capital allocation strategy. The timing and volume of any share repurchases will be determined by management at its discretion.

"Our 63rd consecutive annual dividend increase and new $6 billion share repurchase authorization reflect the strength of the ITW Business Model and our continued confidence in the company’s long-term growth and free cash flow generation," said Christopher A. O’Herlihy, President and Chief Executive Officer. "Returning capital to our shareholders remains a core element of our disciplined capital allocation framework."

About ITW:

Founded in 1912, Illinois Tool Works Inc. (NYSE: ITW) is a Fortune 300 global multi-industry manufacturing leader with revenue of $16 billion in 2025. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 43,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. To learn more, please visit www.itw.com.

Investor Relations & Media Contact:                                                  
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com           

 
        

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What dividend increase did Illinois Tool Works (NYSE: ITW) announce on August 7, 2026?

Illinois Tool Works announced a 7% increase in its regular annual cash dividend, from $6.44 to $6.88 per share. According to Illinois Tool Works, this higher rate will begin with the fourth-quarter 2026 dividend payment of $1.72 per share.

When will ITW's increased fourth-quarter 2026 dividend be paid, and who is eligible?

The increased fourth-quarter 2026 dividend of $1.72 per share will be paid on October 9, 2026. According to Illinois Tool Works, shareholders of record at the close of business on September 30, 2026, will be eligible to receive this dividend.

How large is Illinois Tool Works' new share repurchase authorization announced in 2026?

Illinois Tool Works’ board approved a new authorization to repurchase up to $6 billion of its common stock. According to Illinois Tool Works, management will determine the timing and volume of these share repurchases at its discretion within the company’s capital allocation strategy.

What does ITW's 63rd consecutive annual dividend increase mean for ITW shareholders?

ITW’s 63rd consecutive annual dividend increase signals a long history of growing cash returns to shareholders. According to Illinois Tool Works, this pattern reflects confidence in the company’s long-term growth prospects and free cash flow generation supporting ongoing dividend payments.

How does the 2026 dividend increase and buyback fit ITW's capital allocation strategy (NYSE: ITW)?

The 2026 dividend increase and $6 billion buyback are described as part of ITW’s disciplined capital allocation framework. According to Illinois Tool Works, returning capital to shareholders remains a core element alongside supporting long-term growth and free cash flow generation under the ITW Business Model.