Topic: How To Invest

Q: Hi, Pat. What do you think of Illinois Tool Works (ITW on NYSE). It seems to be a very consistent and reliable dividend payer. Thanks.

Article Excerpt

A: Illinois Tool Works, $132.35, symbol ITW on NYSE (Shares outstanding: 331.8 million; Market cap: $43.4 billion; www.itw.com), is a multi-industry manufacturing company operating in 56 countries. Known as ITW, it has roughly 50,000 employees. The company’s diversified range of industrial products includes aerospace technology, bridges, wind turbines, restaurant appliances, packaging solutions, electronics, deep-sea welding products, and a range of automotive components such as fasteners, door handles, powertrain, and refuelling systems. ITW operates in seven industry segments: automotive products (22.9% of revenue), food equipment (14.8%), laboratory testing equipment (14.5%), welding equipment (10.7%), polymers & fluids (12.0%), construction products (11.7%), and consumer packaging & other specialty products (13.6%). In 2012, the company undertook a strategic re-positioning in which it aggressively exited businesses and product lines that were operating in what it saw as commoditized markets. ITW is now focused on markets and product lines in which profit margins can be sustainably maintained by quality and service differentiation. This strategic re-positioning also aims to implement…

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