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Illinois Tool Works, But the Stock Doesn't

Industrial products and equipment manufacturer Illinois Tool Works(ITW Quote) gave investors a somewhat weaker outlook than some had hoped for. The company is seeing earnings per share of $3.40-$3.52, lower than analyst estimates of $3.64.

Currency gains and an acquisition helped the company make the current quarter's estimated earnings number. These two growth factors, however, are not the sort of catalysts that you want to bank on.

ITW shares are down 20% in the past year. This price action combined with their 2.5% dividend yield (based on last night's closing price of $46.55), does not make Illinois Tool Works an attractive dividend investment at this point. Without any short-term catalysts in sight, dividend investors should look elsewhere for better dividend stocks.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.