Caterpillar Inc. announced that its board has voted to increase the company's quarterly cash dividend by 8 cents, to 60 cents.
The dividend will be paid Aug. 20 to shareholders of record as of July 22.
Caterpillar Inc. Chairman and CEO Doug Oberhelman says the 15 percent increase, along with the company's $1 billion accelerated stock buyback announced in April, supports its commitment to boost value for shareholders.
"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," he added.
The move marks the fourth straight year that Caterpillar has provided shareholders with a dividend increase.
The previous rate offered to stockholders was 52 cents per share.
The board's dividend announcement was made at Caterpillar's shareholders meeting held Wednesday in Greensboro, N.C. where North Carolina received high praise from the company's top executive, according to the Winston-Salem Journal.
"North Carolina has been a tremendous place for our manufacturing and offices for many years. Thirty years in the state and they have taken good care of us," Oberhelman was quoted as saying at the annual meeting.
Caterpillar has about 2,000 employees total at nine North Carolina facilities, making it among the company's five largest domestic work forces outside its home state of Illinois.
"Oberhelman did quash -- with a smile -- any wishful thinking of North Carolina economic officials and local shareholders that Caterpillar would move its headquarters to the state from Peoria," the paper reported.
Although Oberhelman confirmed the company's commitment to Illinois on Wednesday, he did express concern that Illinois' policies were affecting its business climate, noted the Winston-Salem Journal.
Steve Tarter can be reached at 686-3260 or email@example.com.Follow his blog, Minding Business, on pjstar.com and follow him on Twitter @SteveTarter.
Quarterly dividends have climbed over the years at Caterpillar Inc. Here's a rundown over the past five years:
60 cents: June 2013
52 cents: June 2012 to present
46 cents: June 2011 to April 2012
44 cents: June 2010 to April 2011
42 cents: June 2008 to April 2010
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