PEORIA, Ill. – As Caterpillar navigates an uncertain economic environment, the company is raising the quarterly dividend it pays shareholders by 7-percent.
Big Yellow announced last week it is boosting the quarterly dividend to $1.51 per share of common stock, up ten cents.
CAT’s dividend is payable on August 20 to shareholders of record at the close of business on July 21.
Caterpillar expects to continue returning substantially all of its Machinery, Energy, and Transportation (ME&T) free cash flow over time through dividends and share repurchases, according to Caterpillar.com.
“Continued delivery on our enterprise strategy for long-term profitable growth, combined with strong operating performance, has led to robust ME&T free cash flow,” said Caterpillar’s new CEO Joe Creed. “We are pleased to increase our quarterly dividend and retain our continued presence on the S&P 500 Dividend Aristocrats Index.”
The S&P 500 Dividend Aristocrats Index measures the performance of companies on the index that have increased dividends every year for the past 25 years.
Caterpillar’s stock price rose to $364.16 on Wednesday, June 11, the same day Big Yellow announced it was paying out a higher dividend. At the close of regular business Friday, Caterpillar stock had dropped to $357.05 per share.
CAT has paid a cash dividend every year since the company was formed and a quarterly dividend every year since 1933. Caterpillar has paid higher annual dividends to its shareholders for 31 straight years.
Caterpillar is now based in Irving, Texas, is the Peoria area’s second largest employer with 10,500 workers, only behind OSF HealthCare with 12,000 employees in Greater Peoria, according to the Greater Peoria Economic Council.
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