Dividend King Stock

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Dividend King Stock

Buy This Dividend King Stock At A Discount

What comes to mind when we talk about dividend stocks? Of course, the few names that come to mind are P&G, Coca-Cola, or Pepsi. However, there's another dividend king stock, and it's called Illinois Tool Works (ITW).

Despite the name, Illinois Tool Works has nothing to do with drills, hammers, or other hand tools. Instead, the company makes automobile parts, plastic packaging, industrial testing tools, weling suppliers, and much more. The company has a very diverse range of products under its portfolio.

Illinois Tool Works Is Consistently Profitable

However, the company only makes a few products under its own brand name. It is more of a conglomerate of several businesses that operate independently.

The best part about Illinois Tool Works is that it has solid growth and it is consistently profitable. This profitability means the company can continue to pay dividends without any issues.

Also, Illinois Tool Works has been raising its dividend yield for 62 years in a row. To give you some perspective, the quarterly dividend payment of Illinois Tool Works has increased from $0.55 to around $1.61.

Now, the big question is why the stock value is down if Illinois Tool Works is doing so well? The company faces issues like economic uncertainty and growth headwinds.

Also, there were some concerns about the valuation of Illinois Tool Works stock. But now that the stock price has declined, even that concern is no longer valid.

Another thing worth mentioning is that Illinois Tool Works has been running its share buyback program since 2004. This year alone, the company is planning to spend $1.5 billion buying its own stock.

So, if you are looking for a reliable company that also pays dividends, then go for Illinois Tool Works. Sure, it doesn't work in a high-growth and trendy sector like AI. But Illinois Tool Works is reliable and has been paying dividends for decades.

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