:max_bytes(150000):strip_icc()/INV_CaterpillarMachinery_GettyImages-2149337450-1e2284ffa3394e1aa0bcae0781dcb5bf.jpg "Caterpillar Boosts Share Buyback Plan, Raises Dividend")
:max_bytes(150000):strip_icc():format(jpeg)/INV_CaterpillarMachinery_GettyImages-2149337450-1e2284ffa3394e1aa0bcae0781dcb5bf.jpg)
Key Takeaways
- Caterpillar said Wednesday it expanded its share repurchase plan and raised its quarterly dividend.
- The maker of construction and mining equipment added $20 billion to its current stock buyback plan, and lifted its dividend over 8% to $1.41.
- The company said it plans to return most of its free cash flow from its main business to shareholders.
Caterpillar (CAT) said Wednesday that it expanded its stock buyback plan and raised its dividend.
The manufacturer of construction and mining equipment announced that its board added $20 billion to its current share repurchase program launched in 2022, giving it a total of $21.8 billion. The program has no expiration date.
The company also boosted its quarterly dividend by 11 cents to $1.41, payable Aug. 20 to shareholders of record at the close of business on July 22.
Caterpillar To Keep Returning Cash to Investors
Caterpillar said that it expects to continue substantially returning to investors all the free cash flow from its Machinery, Energy & Transportation (ME&T) operations, which produce most of the company’s revenue except for that generated by its financial services unit.
CEO Jim Umpleby said the company continues to generate “robust” ME&T free cash flow “through the execution of our enterprise strategy for long-term profitable growth.”
Caterpillar shares were up about 0.5% at $329.03 as of 3 p.m. ET Wednesday. They’ve added about 11% since the start of the year.
TradingView