Summary
Caterpillar Inc. (CAT) announced a significant 20% increase in its quarterly cash dividend, raising it to $0.30 per share from $0.25 per share. This marks the third consecutive year of expected record results for the company and reflects the Board of Directors' confidence in Caterpillar's long-term growth prospects. The dividend increase underscores the company's ability to generate strong operating cash flow, driven by its focus on Six Sigma processes and its leading market position in construction and mining equipment, engines, and turbines.
Key Highlights
- 1Caterpillar's Board of Directors approved a 20% increase in the quarterly cash dividend.
- 2The new quarterly dividend rate is set at $0.30 per share, up from $0.25 per share.
- 3The dividend increase is payable on August 19, 2006, to stockholders of record on July 20, 2006.
- 4This action reflects management's confidence in Caterpillar's strong financial performance and positive long-term outlook, anticipating a third consecutive year of record results in 2006.
- 5The company attributes its strong cash flow generation to its Six Sigma process focus, leadership position, and business growth.
- 6Caterpillar's cash dividend has tripled since 1996, demonstrating a sustained commitment to shareholder returns.
- 7The press release includes forward-looking statements about future performance, subject to various economic and market risks.