Stephens analyst Matt Duncan downgraded Grainger to Equal Weight from Overweight after the company's Q3 results missed expectations and the company lowered its 2015 guidance due to a worsening industrial economy. Economic headwinds are likely to be too severe to overcome in the near-term, said Duncan, who cut his price target on the stock to $204 from $250.

W.W. Grainger's board of directors approved a quarterly cash dividend of $2.05 per share, an increase of 10% from the most recent company dividend of $1.86 per share. The dividend is payable on June 1, to shareholders of record on May 13. In addition, the board approved the repurchase of up to 5M shares of the company's outstanding common stock, replacing the company's existing repurchase authorization. The new repurchase authorization has no expiration date. "2024 is on track to be our 53rd consecutive year of increased dividends, upholding Grainger's long-standing commitment to our shareholders. This increase, together with our updated share repurchase authorization, reinforces our ability to continue investing in the business while also returning excess cash to shareholders," said D.G. Macpherson, Grainger CEO.