20 Worst Dividend Aristocrat Stocks According to Analysts

11. Illinois Tool Works Inc. (NYSE:ITW)

Average Analyst Rating Score: 3.5

Illinois Tool Works Inc. (NYSE:ITW) is an American manufacturing company that specializes in consumables and specialty products. The company faced a difficult demand environment across most of its segments in the first quarter of 2024. Its revenue came in at $4 billion, which declined by 1% and its organic growth by 0.6%. The company also operates in the semiconductor and welding industries, which are currently experiencing cyclical challenges. These could affect the company’s revenue growth, potentially causing a decline in its stock price. Illinois Tool Works Inc. (NYSE:ITW)’s welding revenue fell by 3.5% on a year-over-year basis. Analysts have a consensus Hold rating on the stock.

In addition, Illinois Tool Works Inc.’s (NYSE:ITW) debt-to-equity ratio stands at 2.75, significantly above the industry average. This indicates that the company is relying more on borrowed funds, suggesting a higher level of financial risk. The company has approximately $8.33 billion in total debt as of the most recent quarter. The stock has a forward P/E of 22.94, which has doubled since 2012. The stock price has also quadrupled during the same period.

Illinois Tool Works Inc. (NYSE:ITW) has been raising its dividends for 51 consecutive years. The company pays a quarterly dividend of $1.40 per share and has a dividend yield of 2.38%, as of June 14.

In May, Julian Mitchell from Barclays held an Underweight rating on Illinois Tool Works Inc. (NYSE:ITW) with a $230 price target. It is one of the worst dividend aristocrat stocks on our list.

The number of hedge funds tracked by Insider Monkey owning stakes in Illinois Tool Works Inc. (NYSE:ITW) grew to 45 in Q1 2024, from 36 in the previous quarter. These stakes are collectively valued at over $1.55 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q1.