Caterpillar Inc. (NYSE: CAT) has announced a significant increase in its quarterly dividend and share repurchase authorization. The Board of Directors has approved an 8% increase in the quarterly dividend, raising it by eleven cents to $1.41 per share of common stock. The dividend is payable on August 20, 2024, to shareholders of record as of July 22, 2024. This move reflects the company's commitment to returning substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders over time through dividends and share repurchases.
In addition to the dividend increase, Caterpillar's Board of Directors has added $20 billion to its current share repurchase authorization, bringing the total authorization to approximately $21.8 billion. The initial share repurchase authorization was launched in 2022 with no expiration date.
Caterpillar Chairman and CEO Jim Umpleby emphasized the company's robust ME&T free cash flow and its commitment to long-term profitable growth. The decision to raise the quarterly dividend and expand the share repurchase authorization reflects the company's strong financial performance.
Caterpillar has a long history of paying dividends, having paid a cash dividend every year since its formation and a quarterly dividend since 1933. The company has consistently increased its annual dividends for 30 consecutive years and is recognized as a member of the S&P 500 Dividend Aristocrats Index.
In terms of financial performance, Caterpillar reported sales and revenues of $67.1 billion in 2023. The company operates through As a result of these announcements, the company's shares have moved -1.5% on the market, and are now trading at a price of $321.47. For the full picture, make sure to review Caterpillar's 8-K report.
