Could a 53-Year Run Be in Jeopardy?

One key figure could save the day... [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED [🚀 Outperform Stocks With the Commodities Boom! 🚀]( Worried about the stock market? It's time to switch gears! During the last commodities supercycle, commodities like gold rose by over 500% while the stock market returned nothing. Join the [Commodities Supercycle Summit]( with Marc Lichtenfeld to discover how to capitalize on the next supercycle. [Don't miss out - click here now 📈💫]( [SAFETY NET]( [Could a 53-Year Run Be in Jeopardy?]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( Illinois Tool Works (NYSE: ITW) may not be the most exciting company in the market. It makes products in seven industrial segments, including automotive, food equipment and polymers. Its 2.5% dividend yield is also not especially electrifying. But what is very impressive is the company's track record of growing its dividend. This year marks the 53rd consecutive year it has raised its dividend, dating all the way back to 1971. That was even before President Richard Nixon got into hot water for the break-in at the Watergate Hotel - a political scandal that seems quaint by today's standards. But I digress. When I profile a company with a very long history of raising its dividend, I like to point out what else was going on in the world when the streak began to put it in context and emphasize just how long ago it was. On this date in 1971, the top song in the U.S. was "Gypsys, Tramps & Thieves" by Cher. The top movie was The Organization starring Sidney Poitier. Clearly, Illinois Tool Works has been raising its dividend for a long time. But will the company's dividend-raising track record continue? Or will it become a thing of the past like the World Hockey Association, whose launch was announced on this day in 1971? (Any New England Whalers fans still out there?) Let's take a look at the company's fundamentals to find out. SPONSORED [My wife was skeptical... until I showed her my account balance.]( [Shocked Wife]( The Fed just created the single greatest income opportunity I've seen in nearly 20 years. I've put more than $1M of my own money into it. And plan to add another million! I even suggested my wife put her savings into it. [That's because I fully expect this money move to hand me at least $1 MILLION within 5 years.]( My wife - an elementary school teacher - wanted me to be more cautious... until she saw my account had soared $79,487 in just one month. [Now she's going in BIG too with $200K!]( If you act now (and I mean before December 13)... you could ride this wave with us. But hurry... once this opportunity is gone... we'll likely never see it again. [Here's why...]( Illinois Tool Works' free cash flow has been going in the wrong direction, and that's a problem. [Chart: ]( This year, free cash flow is forecast to grow to $3.1 billion, which would be its highest level in at least a decade - although the company will have to generate about $1 billion more in free cash flow than it did last year to meet that number. Safety Net penalizes companies for declining cash flow. If Illinois Tool Works is able to report free cash flow above $2.5 billion, that will eliminate some of the dents in its dividend safety rating. Additionally, because free cash flow declined so much last year, the payout ratio was a little too high for my liking. The company paid $1.5 billion in dividends on $1.9 billion in free cash flow for a payout ratio of just under 80%. I like to see payout ratios at 75% or below. That gives me comfort that the company could still afford to pay the dividend if its free cash flow were to fall further. Thanks to the big free cash flow number projected for this year, Illinois Tool Works' payout ratio is forecast to decline to 52%, which is good. Before I reveal the company's dividend safety rating, though, let's do something a little different. Based on everything we've discussed so far, how do you feel about Illinois Tool Works' dividend? Does it seem trustworthy... or risky? What grade would you assign it? Once you've decided on your grade, let me know it in the [comments section]( and then click through to the next page to reveal mine. (No cheating!) 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