ITT Inc. maintains a 77% earnings retention rate with a 23% payout ratio and 4.2x free cash flow coverage of dividends. The company boasts a 0.41x debt to equity ratio, 22x interest coverage, and $516 million in cash on hand. Considered a safe dividend option with a 0.76% yield.

ITT’s dividend safety is backed by low payout ratios and consistent growth. The company generated $438.2 million in free cash flow in 2024, with a 23.9% payout ratio, providing ample coverage for dividends. ITT has raised its dividend every year for over 14 years.

With $1.084 billion in debt and $2.665 billion in equity, ITT’s debt to equity ratio is just 0.41x. The company’s interest coverage ratio exceeds 22x, ensuring it can comfortably service debt obligations. ITT has not cut its dividend in over 14 years.

CEO Luca Savi highlighted ITT’s growth opportunities and value creation from acquisitions in the Q3 2025 earnings call. The company balances dividend payments with share repurchases, demonstrating a commitment to shareholder returns. ITT offers a ‘Very Safe’ dividend safety rating.

ITT is ideal for investors seeking dividend growth and exposure to industrial markets. The company has a history of uninterrupted dividend increases. While the 0.76% yield may not attract income-focused investors, ITT’s conservative payout structure makes it a safe investment option.

Read more at Yahoo Finance: ITT Has Raised Its Dividend for 14 Years and Retains 77% of Profits