Caterpillar Announces Higher Dividend Payment
- June 9, 2010
- Dividend Aristocrats, Dividend Investing, Dividend News, Dividend Stocks
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Caterpillar Inc. announced today that the company will increase their quarterly dividend by 5% to $.44 per share.
Caterpillar joins Target and Viacom in announcing higher dividend payouts. Following Caterpillar’s dividend increase, the stock will offer a 3.1% yield based on today’s closing price.
“During the global economic turmoil of 2009, Caterpillar maintained its dividend
rate, while also strengthening the company’s balance sheet and improving cash flow.
Now we are pleased to reward stockholders with dividend growth, which underscores
Caterpillar’s global reach and the strength of our business model,” said Caterpillar
Chairman and Chief Executive Officer Jim Owens.
Caterpillar has now increased its dividend payments to its shareholders for 17 years consecutive years.
Yesterday, Caterpillar reaffirmed their goal of delivering 15 – 20% annual earnings growth. Wall Street is expecting earnings to grow 44% in 2010 this year, following 2009’s depressed earnings levels. Next year, earnings are expected to grow by 47% as global demand picks up for Caterpillar’s construction equipment.
The dividend will be payable on August 20 to shareholders of record as of July 20.
