ITW - This Dividend King Continues to Deliver on Its Promises
2023-05-10 08:15:00 ET
Investing in the stock market involves taking on risk to get a higher return than a risk-free asset. The objective is the same no matter the stock, but the amount of risk and potential reward can vary wildly.
Dividend Kings like Illinois Tool Works (NYSE: ITW) are companies that have paid and raised their dividends for at least 50 consecutive years. These are companies that have been around a while, operate mature businesses, and tend to reward shareholders with stock buybacks and dividends as opposed to growth. For this reason, Dividend Kings tend to be viewed as safe stocks.
But not all Dividend Kings are created equal. Some continue to raise their dividends but lack a strong balance sheet, margins, or steady free cash flow (FCF) to support dividend payments with cash.
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This Dividend King Continues to Deliver on Its Promises