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Caterpillar keeps quarterly dividend steady at $1.30 per share

EditorEmilio Ghigini
Published 10/04/2024, 11:46 pm
© Reuters.

IRVING, Texas – Caterpillar Inc. (NYSE: NYSE:CAT), a leading manufacturer of construction and mining equipment, has announced that its Board of Directors has decided to uphold the company's quarterly dividend at $1.30 per share. The dividend is scheduled to be paid on May 20, 2024, to shareholders who are on record as of April 22, 2024.

This decision marks a continuation of the company's long-standing practice of providing returns to its shareholders. Caterpillar has a history of distributing a cash dividend annually since its inception and has been issuing quarterly dividends since 1933. The company is also noted for its track record of increasing annual dividends for 30 consecutive years, earning it a place in the S&P 500 Dividend Aristocrats Index.

Caterpillar reported sales and revenues of $67.1 billion in 2023, underscoring its position as the world's foremost manufacturer in its industry. The company's product lineup includes a wide array of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

Caterpillar has been instrumental in supporting its customers in building a more sustainable world for nearly a century, with a focus on innovation and a commitment to a reduced-carbon future.

Operating globally, Caterpillar's business is divided into three main segments: Construction Industries, Resource Industries, and Energy & Transportation. Additionally, it offers financing and related services through its Financial Products segment.

The maintenance of the dividend reflects Caterpillar's financial stability and its commitment to shareholder value. This announcement is based on a press release statement issued by Caterpillar Inc.

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InvestingPro Insights

Caterpillar Inc. (NYSE: CAT) continues to demonstrate financial resilience and a shareholder-friendly approach, as evidenced by its recent dividend announcement. The company's dedication to maintaining and increasing dividends is further highlighted by an InvestingPro Tip noting that Caterpillar has raised its dividend for 10 consecutive years and has maintained dividend payments for an impressive 54 consecutive years.

From a valuation perspective, Caterpillar is currently trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at 17.13. This suggests that investors may be getting value for their investment when considering the company's earnings potential. Additionally, Caterpillar's stock is known for its low price volatility, which could appeal to investors seeking stability in their portfolio.

Looking at the InvestingPro Data, Caterpillar's market capitalization stands at a robust 182.99 billion USD. The company's revenue growth over the last twelve months was 12.84%, indicating a solid increase in sales. With a strong return on assets of 12.2% in the same period, Caterpillar's operational efficiency is evident, bolstering investor confidence in its ability to generate profits from its asset base.

For investors interested in further insights and tips, there are additional InvestingPro Tips available, including Caterpillar's performance metrics and analyst predictions. These can be accessed through InvestingPro's comprehensive analysis at Moreover, by using the coupon code PRONEWS24, readers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information.

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