Why I'm Removing Illinois Tool Works From My Core Holdings, And What I'm Replacing It With

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About: Illinois Tool Works Inc. (ITW), Includes: BMY, FRT, MMM, MNR, SPG
by: Cashflow Capitalist
This article is exclusive for subscribers.
Cashflow Capitalist
Long-term horizon, dividend investing, dividend growth investing, REITs
Summary

Illinois Tool Works is an innovative, efficient industrial company and dividend growth stock.

But the company has struggled (or been uninterested) in growing revenue over the past decade, which is problematic.

I discuss some possible replacements for Illinois Tool Works in my top ten list and settle on one: Federal Realty Trust.

Federal exhibits all the traits I look for in a core holding: safety, financial strength, and steady growth.

Importantly, Federal's profit growth stems not from financial engineering but rather smart capital allocation.

Introduction

As much as I or anyone else would like to be a long-term buy-and-hold investor, there are always curveballs being thrown that make one review and rethink one's previous decisions.

This happened recently as