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Caterpillar hikes quarterly dividend, expands share buyback plan; stock up

Published 06/12/2024, 11:24 AM
Updated 06/12/2024, 11:26 AM
© Reuters.  Caterpillar hikes quarterly dividend, expands share buyback plan; stock up

Caterpillar (NYSE:CAT) raised its quarterly dividend by ten cents, an 8% hike, to $1.30 per share, effective from August 18, 2023.

Moreover, Caterpillar has increased its share repurchase authorization by $20 billion.

CAT shares rose 1% in Wednesday trading following the announcements.

With the expanded authorization, Caterpillar now has the capacity to repurchase up to $21.8 billion of its common stock.

"We continue to generate robust ME&T free cash flow through the execution of our enterprise strategy for long-term profitable growth," said Caterpillar Chairman and CEO Jim Umpleby.

"Our strong financial performance supports increasing our quarterly dividend and share repurchase authorization, which aligns with our commitment to return substantially all ME&T free cash flow to shareholders over time."

Caterpillar has a long history of dividend payments, having paid a cash dividend every year since its formation and quarterly dividends since 1933. This marks the 29th consecutive year of increased annual dividends for the company.

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