Are DOGE layoffs set to resume?
IRVING, Texas - Caterpillar Inc. (NYSE: CAT), currently trading near InvestingPro’s Fair Value assessment, announced Wednesday that its Board of Directors approved a 7% increase to the company’s quarterly dividend, raising it by 10 cents to $1.51 per share of common stock.
The dividend will be payable August 20 to shareholders of record at the close of business on July 21, according to a press release statement from the heavy equipment manufacturer.
"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 CEO Joe Creed.
The company stated it expects to continue returning substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders through dividends and share repurchases.
This marks the 31st consecutive year Caterpillar has increased its annual dividend to shareholders, maintaining its position as a member of the S&P 500 Dividend Aristocrats Index. The company has paid a cash dividend every year since its formation and has maintained quarterly dividend payments since 1933.
Caterpillar, which reported sales and revenues of $64.8 billion in 2024, operates globally through three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, while also providing financing through its Financial Products segment.
In other recent news, Caterpillar reported that its financial services division, CAT Financial, saw a 1% increase in revenue year-over-year, reaching $860 million in the first quarter of 2025. However, the profit from CAT Financial decreased by 24% to $130 million, primarily due to the absence of a prior year’s insurance settlement and a rise in credit loss provisions. Additionally, Caterpillar, alongside other companies, secured a $980 million contract for the FEMA generator program, which will run until 2030. Analysts have been active in evaluating Caterpillar’s stock, with JPMorgan maintaining an Overweight rating and Citi reiterating a Buy rating, both citing positive aspects of the company’s financial performance and market conditions. BofA Securities raised its price target for Caterpillar to $385, highlighting a valuation gap with Deere & Company, while UBS upgraded the stock to Neutral with a new target of $357, following favorable trade discussions with China. These developments reflect the ongoing assessments and strategic moves impacting Caterpillar’s financial and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.