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.