Shares of Caterpillar Inc. (CAT) rose 1.2% in morning trading Wednesday, to pace the Dow Jones Industrial Average's gainers, after the maker of construction and mining equipment raised its quarterly dividend by 8.1%. The company said the new dividend of $1.20 a share, up from $1.11 a share, will be payable on Aug. 19 to shareholders of record on July 20. Based on current stock prices, the new annual dividend rate implies a dividend yield of 2.09%, which compares with the yield for the SPDR Industrial Select Sector ETF (XLI) of 1.42% and the implied yield for the S&P 500 of 1.55%. "Our dividend increase reflects our strong balance sheet and liquidity position as well as confidence in continued strong free cash flow generation from Machinery, Energy & Transportation (ME&T)," said Caterpillar Chief Executive Jim Umpleby. The stock has run up 11.2% year to date, while the Dow has lost 9.0%.
(END) Dow Jones Newswires
June 08, 2022 10:54 ET (14:54 GMT)
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