GLENVIEW, Ill., Aug. 2, 2013 /PRNewswire/ -- Illinois Tool Works Inc. (NYSE: ITW) today announced 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 approximately 81 million shares based on ITW's closing share price on August 1, 2013. The Company's existing share repurchase authorization of $4.0 billion was announced in May of 2011 and has approximately $1.2 billion remaining in that program as of June 30, 2013. The board also authorized a 10.5 percent increase in the dividend payout to shareholders, representing a quarterly increase of $0.04 per share―or $0.16 per share annually—versus 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, 2013 to stockholders of record as of September 30, 2013. "As part of our enterprise strategy, the Company is strongly committed to capital allocation priorities that emphasize both organic investments as well as the return of free operating cash flow to investors," said E. Scott Santi, president and chief executive officer. "We will continue to focus on a strong dividend and external investments such as share repurchases and selective acquisitions." This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding dividend policy and capital allocation priorities. These statements are subject to certain risks, uncertainties and other factors which could cause actual results to differ materially from those anticipated. Such factors include those contained in ITW's 2012 Form 10-K.