Caterpillar Inc. recently voted to increase their quarterly dividend by 20% to thirty-six cents ($0.36) per share of common stock, payable August 20, 2007, to stockholders of record at the close of business on July 20, 2007.
“This increase reflects the Board of Directors’ continued confidence in Caterpillar’s long-term outlook,” said Caterpillar Chairman and Chief Executive Officer Jim Owens.
“Our broad global reach and business diversity are enabling our continued success, and we’re pleased to reward our stockholders with consistent dividend growth. Team Caterpillar is on track to deliver future success throughout the company by using 6 Sigma to achieve our strategic goals of improved safety, quality, velocity and growth.”
This is the third consecutive year that Caterpillar has increased its dividend by at least 20 percent.
Caterpillar is a member of the Mergent Dividend Achiever list and has increased its dividend in each of the last 14 years. In addition, Caterpillar has room to increase the dividend ever further with a last reported dividend payout ratio of less than 30%!
Caterpillar has also been a big winner thus far in 2007, rising from the low $60.00 range to nearly $80.00 per share.
It might just be a good idea to put this one on your watch list!