ITT Increases Dividend for 14th Consecutive Year While Retaining 77% of Earnings
Dividend Safety and Growth: ITT maintains a low payout ratio of 22.9% and has a strong free cash flow coverage of 4.2 times its dividend obligations, allowing for consistent dividend growth at a 19% annual rate over the past five years.
Financial Stability: The company has a conservative debt to equity ratio of 0.41x and an impressive interest coverage ratio exceeding 22 times, indicating strong financial health and the ability to service its debt comfortably.
Dividend History: ITT has increased its dividend for over 14 consecutive years, demonstrating a commitment to returning value to shareholders, even during economic downturns like the 2020 pandemic.
Investment Consideration: While ITT offers a modest dividend yield of 0.76%, it is more suitable for investors focused on long-term dividend growth rather than immediate high yields.
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- Investor Conference Schedule: ITT Inc. will present at the Barclays 43rd Annual Industrial Select Conference in Miami on February 17, 2026, with CEO Luca Savi and CFO Emmanuel Caprais expected to draw significant investor interest.
- Key Presentation Dates: The executives will also speak at the Gabelli 36th Annual Pump, Valve & Water Systems Symposium in New York on February 26, further showcasing the company's leadership in critical industries.
- Live Webcast Access: Investors can access the audio webcasts of both presentations through ITT's website, enhancing interaction and transparency between the company and its investors.
- Company Background Overview: ITT is a diversified leading manufacturer focused on providing highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets, demonstrating its extensive influence in the global market.
- Software Sector Decline: Software stocks fell for the eighth consecutive session on Thursday, marking the longest losing streak since May 2021, as investor concerns about AI undermining demand in the SaaS economy intensified.
- ETF Performance: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) dropped 1.9%, extending its decline to approximately 30% from late October highs, indicating a waning confidence in tech stocks.
- Individual Stock Movements: Palantir Technologies Inc. (NASDAQ:PLTR) fell 4.4% after an 11% drop on Wednesday, suggesting a diminishing market expectation for its growth prospects in the AI-driven landscape.
- Broader Economic Impact: Bitcoin slid 9% to $66,000, negatively impacting software stocks tied to crypto markets, while commodities also faced broad declines, with silver plunging 13% to $76 an ounce and gold slipping 2% to $4,865 per ounce.
- Significant Performance Growth: ITT Inc. reported a 13% year-over-year revenue increase in Q4 2025, exceeding $1 billion, with orders up 15% and organic growth at 9%, indicating robust performance across all business segments that is expected to enhance future market share.
- Earnings Per Share Increase: The EPS for Q4 reached $1.85, a 23% increase (26% excluding equity dilution), while the annual EPS grew by 14%, reflecting ongoing improvements in profitability that bolster investor confidence.
- Strong Cash Flow: Free cash flow surpassed $550 million, up 27% year-over-year, with cash conversion exceeding 100%, providing ample funding for future investments and acquisitions, particularly in the upcoming SPX FLOW deal.
- Strategic Acquisition Acceleration: Management highlighted that the SPX FLOW acquisition will serve as a significant growth driver, with expected single-digit EPS accretion in 2026, further solidifying ITT's competitive position in the market.
- Dividend Increase: ITT has declared a quarterly dividend of $0.386 per share, representing a 10% increase from the previous $0.351, indicating ongoing improvements in profitability and cash flow management, which enhances investor confidence.
- Yield Performance: The forward yield of 0.76% not only provides shareholders with stable returns but may also attract more income-seeking investors, potentially driving the stock price higher.
- Payment Schedule: The dividend will be payable on April 6, with a record date of March 6 and an ex-dividend date also on March 6, ensuring shareholders receive their earnings promptly and enhancing the company's credibility in the capital markets.
- Market Reaction: The dividend increase reflects ITT's strong financial performance and is expected to have a positive impact on its stock price, further solidifying its competitive position in the industry.








