Computed head-to-head · 6 dimensions
ITW vs UPS
Illinois Tool Works Inc. versus United Parcel Service, Inc. — yield, safety, growth trend, cost, scale, and tax treatment.
ITW wins 2–1 on our six-dimension comparison, but UPS can still be the better fit depending on your priorities — see each dimension below.
ITW wins this comparison 2–1 across 6 dimensions. ITW yields 2.44% — lower than UPS's 6.53% — and carries a 8.3/10 dividend safety score (Strong) vs 3.6/10 for UPS (Weak). ITW wins 2–1 on our six-dimension comparison, but UPS can still be the better fit depending on your priorities — see each dimension below.
On yield alone, UPS generates 6.53% vs 2.44% — a 4.09% difference that translates to $4,090 more per year on a $100,000 investment. On dividend safety, ITW scores 8.3/10 (Strong) vs 3.6/10 (Weak) for UPS — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | ITW | UPS | Winner |
|---|---|---|---|
| Yield | 2.44% | 6.53% | UPS wins |
| Dividend safety | 8.3/10 | 3.6/10 | ITW wins |
| Growth trend | +0.18% vs 5y | +2.19% vs 5y | ITW wins |
| Volatility (beta) | 1.00 | 1.04 | Tie |
| Scale | $80.4B | $84.4B | Tie |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 1 wins | ITW wins |
Dimension by dimension
UPS wins on yield (6.53% vs 2.44%)
On a $10,000 investment that's about $409 more in annual dividend income before taxes — though higher yield often comes with higher risk.
UPS's higher yield (6.53%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus ITW's 2.44% — especially if the higher yield is driven by covered calls or a falling share price.
ITW wins on safety (8.3/10 vs 3.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. ITW scores better on the weighted average of those factors.
ITW (8.3/10) scores 4.7 points higher than UPS (3.6/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
ITW shows healthier dividend-vs-price trend
ITW's yield is 0.18% above its 5y average, versus 2.19% for UPS. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
Volatility (beta) is similar
Both tickers move with comparable sensitivity to the broader market.
Comparable scale ($80.4B vs $84.4B)
Within 1.5x of each other on market cap / AUM — similar institutional footprint.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice.Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
Which is better for income, ITW or UPS?
ITW wins 2–1 on our six-dimension comparison, but UPS can still be the better fit depending on your priorities — see each dimension below.
ITW vs UPS: which has a higher dividend yield?
ITW yields 2.44% and UPS yields 6.53%. On a $10,000 investment that's about $409 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is ITW or UPS a safer dividend in 2026?
ITW scores 8.3/10 (Strong) on the Infnits dividend safety scale. UPS scores 3.6/10 (Weak). ITW is the safer pick on our scoring model.
Which has better dividend growth, ITW or UPS?
ITW's yield is 0.18% above its 5y average, versus 2.19% for UPS. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
ITW vs UPS: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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