Caterpillar increases dividend 15%

Caterpillar Inc. announced Wednesday it will raise its quarterly cash dividend 15 percent, by eight cents to 60 cents a share.

The dividend will be payable Aug. 20 to stockholders of record at the close of business on July 22, the company said.

Caterpillar's board of directors voted on the dividend increase on Wednesday, marking the fourth consecutive year the company has increased the dividend rate.

"Growing dividends through the business cycle is important and this 15 percent increase, along with the $1 billion accelerated stock repurchase that we announced in April, support our commitment to deliver superior stockholder returns," said Caterpillar Chairman and CEO Doug Oberhelman in a news release.

"Our long dividend history, starting in 1925, is a great reminder of Caterpillar's enduring role in developing and manufacturing products and services that helped build the infrastructure of the modern world. We have a great track record and with our strong balance sheet and financial strength, we are looking forward to seeing our customers play a role in the continued development and the improvement of the lives of people around the world for decades to come," Oberhelman added.

The announcement had little effect on the stock price. It closed at $83.21 a share on Wednesday, down 31 cents, in trading on the New York Stock Exchange. The volume of shares traded, 4.7 million, was well below the daily average over the last three months of about 7 million shares.