Caterpillar Inc. announced an 8% increase in its quarterly dividend and an additional $20 billion boost to its share buyback program, driven by strong performance from its machinery, energy, and transportation (ME&T) segment. The company’s board approved an 11 cent increase to its quarterly payout, raising the dividend to $1.41 per share, payable on August 20. The new share buyback authorization brings the program’s total to $21.8 billion with no expiry date.
The company highlighted its commitment to returning free cash flow from its ME&T segment to shareholders through dividends and share repurchases. This segment, known for manufacturing heavy-duty machinery for resource industries, construction, and transportation, has been a significant driver of Caterpillar's robust financial performance. CEO Jim Umpleby emphasized the importance of their enterprise strategy in achieving long-term profitable growth, which underpins the company’s ability to enhance shareholder value.
Market Overview:- Caterpillar increases quarterly dividend by 8% and expands share buyback program by $20 billion.
- The ME&T segment’s strong performance supports continued cash flow return to shareholders.
- CEO Jim Umpleby cites robust free cash flow generation as key to financial strategies.
- Quarterly dividend raised to $1.41 per share, payable on August 20.
- Share buyback program now totals $21.8 billion, with no expiry date.
- The ME&T segment remains a crucial driver of financial performance.
- Caterpillar's focus on long-term profitable growth supports ongoing shareholder returns.
- The company’s strong financial health allows for significant dividend and repurchase commitments.
- Continued robust performance from the ME&T segment is anticipated to sustain financial strategies.
Caterpillar's proactive financial strategies reflect its confidence in sustained growth and profitability. The significant increase in both dividend and share buyback authorization underscores the company's dedication to enhancing shareholder value.
As of 11:24 a.m. in New York, Caterpillar shares saw a slight rise, trading at $329.89.
