The Board of Directors of Illinois Tool Works Inc. (NYSE: ITW) authorized a seven percent increase to the dividend payout to shareholders, representing a quarterly increase of $0.09 per share – or $0.36 per share annually – versus the current dividend rate. The Board also declared a dividend on the company’s common stock of $1.40 per share for the third quarter of 2023. The dividend equates to $5.60 per share on a full-year basis. The dividend will be paid on October 12, 2023 to shareholders of record as of September 29, 2023.

The Board also approved a new share repurchase program that authorizes management to purchase up to $5 billion of the Company’s common stock over an open-ended period of time. The full authorization represents approximately 20 million shares based on ITW’s closing share price on August 3, 2023. The Company’s existing share repurchase authorization of $3 billion was announced in May 2021 and has approximately $740 million remaining in that program as of June 30, 2023.

Illinois Tool Works