Caterpillar increases quarterly dividend from $1.41 to $1.63/share
Caterpillar Inc. announced an 8% increase in its quarterly dividend to $1.63 per share, up from $1.41, payable on Aug. 19, 2026. The Board of Directors approved the hike, reflecting the company's strong free cash flow and profitable growth driven by its enterprise strategy. This increase extends Caterpillar's streak of higher annual dividends to 32 years.
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Caterpillar Inc. increased its quarterly dividend by 8% to $1.63 per share, payable on Aug. 19, 2026, to shareholders of record at the close of business on July 20, 2026. The Board of Directors approved the raise, marking the 32nd consecutive year of higher annual dividends. The company expects to return substantially all Machinery, Power & Energy (MP&E) free cash flow to shareholders over time through dividends and share repurchases.
Strategic Performance and Growth
Chairman and CEO Joe Creed attributed the dividend increase to the execution of the company's enterprise strategy, which combines world-class equipment with advanced technology. Creed stated that this approach is driving profitable growth and strong MP&E free cash flow. The dividend hike maintains Caterpillar's place on the S&P 500 Dividend Aristocrats Index.
Dividend History
Caterpillar has paid a cash dividend every year since its formation and has paid a quarterly dividend since 1933. The company has consistently increased its annual dividends for over three decades.
Key Dividend Details
| Detail | Information |
|---|---|
| New Quarterly Dividend | $1.63 per share |
| Previous Dividend | $1.41 per share |
| Increase | 12 cents (8%) |
| Record Date | July 20, 2026 |
| Payment Date | Aug. 19, 2026 |
Company Overview
With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through primary business segments: Power & Energy, Construction Industries, and Resource Industries.
How will the balance between dividend increases and share repurchases shift as the company returns 'substantially all' MP&E free cash flow?
What specific advanced technologies are driving the profitable growth that supports this sustained dividend policy?
Is the 8% increase indicative of a long-term payout growth target, or will future hikes fluctuate with capital expenditure needs?
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