Caterpillar Raises Quarterly Dividend 7.95% to $1.63

Caterpillar Inc. (NYSE: CAT) increased its quarterly dividend to $1.63 per share from $1.51, a 7.95% rise. The ex-dividend date was July 20, 2026.

The new distribution equates to an annualized dividend of $6.52 per share. Based on a share price of $827.90, Caterpillar’s forward annual yield is 0.79%.

The increase extends the industrial company’s record of annual dividend growth to 32 consecutive years. Caterpillar has also paid quarterly dividends since 1933, underscoring the payout’s long history across multiple economic and equipment-demand cycles. The company’s dividend was previously cut in 1992.

Caterpillar said the increase reflects execution of its strategy, which combines equipment with technology to address customer needs. Chairman and Chief Executive Joe Creed connected the higher payout with profitable growth and strong Machinery, Power & Energy free cash flow. Management has said it expects to return substantially all of that free cash flow to shareholders over time through dividends and share repurchases. Caterpillar’s dividend announcement

The company manufactures construction and mining equipment, engines, industrial gas turbines and diesel-electric locomotives. Its operations span Power & Energy, Construction Industries and Resource Industries, supported by financing services and a global dealer network. Caterpillar company background

Recent operating results provided additional context for the board’s decision. Caterpillar subsequently reported record quarterly sales and revenues, with management citing strong order rates, a growing backlog and broader momentum across its three primary operating segments. The company also continued returning cash through both dividends and share repurchases. Caterpillar’s second-quarter results

What it means for income investors

The higher rate increases Caterpillar’s annualized dividend income per share while preserving its 32-year growth streak. The 0.79% forward yield remains modest relative to many income-oriented equities, making the event more notable for dividend growth and continuity than for current yield.

Caterpillar carries a dividend safety score of 89 out of 100 and an A safety grade. Those measures indicate a strong current payout profile, although the company’s exposure to capital spending and cyclical industrial markets remains relevant when assessing the durability of future dividend growth.