Illinois Tool Works Inc.ITW

Where ITW's Payout Ratio sits inside its own 10-year distribution, with the yearly high, low and average.

$271.65+2.56 (+0.95%)Previous close
NYSEIndustrialsDividend King

ITW Payout Ratio: current value, 10-year range and year-by-year history

Payout Ratio History

Historically priceyAbove avgAround avgBelow avgHistorically cheap
ITW Payout Ratio historyITW Payout Ratio from Sep 2023 to Jun 2026: low 52.92%, high 66.81%, latest 63.28%.51.81%55.84%59.86%63.89%67.92%Sep 23Mar 24Sep 24Jun 25Dec 25Jun 26med 61.05%

ITW Payout Ratio by year

Yearly range of ITW’s payout ratio from 2016 to 2026. Over the full period it ranged from 39.6% to 80.5%, averaging 57.1%.

ITW Payout Ratio — yearly low, average, high and year-end values
YearLowAverageHighYear-end
202663.3%65.0%66.8%63.3%
202561.1%63.7%66.7%66.7%
202455.8%59.2%61.4%60.3%
202352.9%60.0%68.5%52.9%
202276.5%78.6%80.5%80.5%
202155.8%61.9%65.8%65.8%
202049.3%52.0%54.7%54.7%
201948.8%49.4%50.1%50.1%
201846.1%47.5%48.2%48.2%
201743.5%45.6%47.0%46.5%
201639.6%40.5%41.4%41.4%

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What fraction of free cash flow is paid out as dividends. More reliable than the earnings-based payout ratio because cash is harder to manipulate through accounting choices. Low ratio = room to grow the dividend and absorb an earnings dip. High ratio = dividend is consuming most of the cash generated.

FormulaTTM Dividends Per Share / (TTM FCF ÷ Shares) × 100%
Full guide
How to read this chart

A steadily rising FCF payout ratio warrants scrutiny only if FCF itself is flat or falling — that means the company is paying out a larger slice of shrinking cash. A high but stable ratio in a capital-light business (e.g. consumer staples) can be perfectly sustainable.

Key caveats
  • FCF can be lumpy: large one-off capex or working-capital swings distort a single year. Look at the multi-year trend rather than any single data point.
  • Utilities and REITs naturally sustain 60–90% FCF payout ratios; industrials and tech companies typically run 20–50%. Always compare to sector context.
Pro — up to 30-year history

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