Manitowoc Company, Inc. (MTW), SYSCO Corporation (SYY): Why Dividend Investors Love Illinois Tool Works Inc. (ITW)

When will Illinois Tool Works boost its payout?

With Illinois Tool Works just having raised its dividend, investors shouldn’t expect more increases until a year from now. Nevertheless, with just a 30% payout ratio, Illinois Tool Works has room to expand its dividend payments quite a bit in the years to come, even if expected earnings growth doesn’t materialize at the rate shareholders would like to see. Having that margin of safety is a key component of Illinois Tool Works’ dividend success over the decades and should continue to serve investors well in the future.

The article Why Dividend Investors Love Illinois Tool Works originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Illinois Tool Works and Sysco.

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