Illinois Tool Works (WBO:ITW) 5-Year Yield-on-Cost % : 3.26 (As of May. 02, 2024)

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What is Illinois Tool Works 5-Year Yield-on-Cost %?

Illinois Tool Works's yield on cost for the quarter that ended in Dec. 2023 was 3.26.

The historical rank and industry rank for Illinois Tool Works's 5-Year Yield-on-Cost % or its related term are showing as below:

WBO:ITW' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.37 Med: 3.11 Max: 4.88
Current: 3.26

During the past 13 years, Illinois Tool Works's highest Yield on Cost was 4.88. The lowest was 2.37. And the median was 3.11.

WBO:ITW's 5-Year Yield-on-Cost % is ranked better than
67.94% of 1853 companies
in the Industrial Products industry
Industry Median: 2.05 vs WBO:ITW: 3.26

Competitive Comparison of Illinois Tool Works's 5-Year Yield-on-Cost %

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Illinois Tool Works's 5-Year Yield-on-Cost % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's 5-Year Yield-on-Cost % falls into.

Illinois Tool Works 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Illinois Tool Works is calculated as

Yield-on-Cost

Dividend Yield %

Dividend Growth Rate)^5

Illinois Tool Works (WBO:ITW) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.

Illinois Tool Works 5-Year Yield-on-Cost % Related Terms

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Illinois Tool Works (WBO:ITW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Illinois Tool Works Inc (WBO:ITW) » Definitions » 5-Year Yield-on-Cost %

Comparable Companies

Traded in Other Exchanges

ITW:USA ILT:Germany ILT:Germany ILT:Germany I1TW34:Brazil

Address

155 Harlem Avenue, Glenview, IL, USA, 60025

Website

https://www.itw.com

Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.