ITW Announces New $6 Bln Stock Buyback Program; 10.5% Dividend Increase

(RTTNews) - Illinois Tool Works Inc. (ITW) said Friday that its board of directors approved a new share repurchase program that authorizes management to buy back up to $6 billion of the company's common stock over an open ended period of time.

The full authorization represents about 81 million shares based on the company's closing share price on August 1.

The company's existing share repurchase authorization of $4.0 billion was announced in May 2011 and has about $1.2 billion remaining in that program as of June 30, 2013.

The company also said its board has authorized a 10.5% increase in the dividend payout to shareholders, representing a quarterly increase of $0.04 per share?or $0.16 per share annually—compared to the current dividend rate.

Regular quarterly cash dividends will now total $0.42 per share or $1.68 per share on an annual basis. The dividend will be paid on October 8 to stockholders of record as of September 30.