Cat maintains dividend; earnings report Oct. 23

Caterpillar Inc. will maintain its quarterly cash dividend of 60 cents per share of common stock, the company's board of directors decided on Oct. 9.

The dividend will be payable Nov. 20 to stockholders of record at the close of business on Oct. 21, the company said.

This marks 20 consecutive years Caterpillar has paid higher dividends to its stockholders. Since 1998, the company's cash dividend has more than tripled.

"I am pleased to announce we are maintaining Caterpillar's dividend due to the continued strength of our balance sheet and strong cash flow, which has placed us in a good position to reaffirm our long-standing commitment to stockholders," said Caterpillar Chairman Doug Oberhelman.

"This action, following the 15-percent increase in our quarterly dividend announced in June and $2 billion in stock repurchases also completed this year, clearly demonstrates how we are taking advantage of our strong cash position to deliver on our commitments to our stockholders," Oberhelman said.

Including this announcement, Caterpillar has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933.

Caterpillar has struggled a bit in 2013. While profitable still, sales and revenues have taken a hit because of orders being delayed or canceled and a downturn in the mining industry. Some business units in the company have gone into trough mode, with temporary layoffs to get production in line with demand.

Caterpillar will announce its third-quarter sales and profits on Oct. 23. Wall Street analysts who cover Caterpillar anticipate sales and revenues will be down more than 12 percent from the third quarter of 2012 and that profits will likely be down considerably, as well.

The consensus among 21 analysts is that third-quarter profit will be $1.71 a share on sales and revenues of $14.45 billion. A year ago the third-quarter profit was $2.54 a share on $16.44 billion in sales and revenues.

About the Author

Paul Gordon is the editor of The Peorian after spending 29 years of indentured servitude at the Peoria Journal Star. He’s an award-winning writer, raconteur and song-and-dance man. He also went to a high school whose team name is the Alices (that’s Vincennes Lincoln High School in Indiana; you can look it up).