Caterpillar Raises Dividend 15% (CAT)
Construction and mining equipment manufacturer, Caterpillar Inc. (CAT) reported on Wednesday that its board has approved a 15% increase to its dividend.
The company has raised its quarterly dividend from 52 cents to 60 cents, or $2.40 annually. The next dividend will be paid on August 20 to shareholders of record on July 22.
Caterpillar’s Chairman and CEO Doug Oberhelman commented, “growing dividends through the business cycle is important, and this 15 percent increase, along with the $1 billion accelerated stock repurchase that we announced in April, support our commitment to deliver superior stockholder returns.”
“Our long dividend history, starting in 1925, is a great reminder of Caterpillar’s enduring role in developing and manufacturing products and services that helped build the infrastructure of the modern world. We have a great track record and with our strong balance sheet and financial strength, we are looking forward to seeing our customers play a role in the continued development and the improvement of the lives of people around the world for decades to come.”
Caterpillar shares were mostly flat during Wednesday afternoon trading. The stock is down -7% YTD.
The Bottom Line
With the dividend increase, shares of Caterpillar Inc. (CAT) will have a 2.88% yield, based on Wednesday afternoon’s price of $83.23.
Caterpillar Inc. (CAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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