Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 2.38%.
YIELD ON COST (YOC)
2.38%
ITW now pays $6.44 per share a year. Measured against the price it actually traded at back then, a long-term holder is earning:
| If you bought | Price then | Yield on cost today |
|---|---|---|
| 10 years ago(2016-08-30) | $120.17 | 5.36% |
| 5 years ago(2021-09-08) | $221.81 | 2.90% |
| 3 years ago(2023-08-29) | $245.63 | 2.62% |
| 1 year ago(2025-09-03) | $261.25 | 2.47% |
| Buying today(at $268.69) | $268.69 | 2.38% |
Projection: starting from today's 2.38% yield, assuming the dividend keeps compounding at 7.2% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.
Today
2.38%
In 3 years
2.93%
In 5 years
3.37%
In 10 years
4.75%
Try your own purchase price, dividend and growth rate for Illinois Tool Works Inc. (ITW).
Starting Yield
2.40%
Ending YOC
6.68%
Year 15 Dividend
$17.94
Cum. Dividends Recd.
$174.21
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $6.44 | N/A | 2.40% | $0.00 |
| Year 1 | $6.90 | +7.07% | 2.57% | $6.90 |
| Year 2 | $7.38 | +7.07% | 2.75% | $14.28 |
| Year 3 | $7.90 | +7.07% | 2.94% | $22.18 |
| Year 4 | $8.46 | +7.07% | 3.15% | $30.65 |
| Year 5 | $9.06 | +7.07% | 3.37% | $39.71 |
| Year 6 | $9.70 | +7.07% | 3.61% | $49.41 |
| Year 7 | $10.39 | +7.07% | 3.87% | $59.80 |
| Year 8 | $11.12 | +7.07% | 4.14% | $70.92 |
| Year 9 | $11.91 | +7.07% | 4.43% | $82.83 |
| Year 10 | $12.75 | +7.07% | 4.75% | $95.58 |
| Year 11 | $13.65 | +7.07% | 5.08% | $109.24 |
| Year 12 | $14.62 | +7.07% | 5.44% | $123.86 |
| Year 13 | $15.65 | +7.07% | 5.83% | $139.51 |
| Year 14 | $16.76 | +7.07% | 6.24% | $156.27 |
| Year 15 | $17.94 | +7.07% | 6.68% | $174.21 |
Yield on cost is the dividend yield measured against your original purchase price, not today's price. As a company raises its dividend, the yield on what you actually paid keeps rising even when the market yield holds steady.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
