Caterpillar hikes dividend

PEORIA, Ill., June 9 (UPI) -- Caterpillar Inc. of Illinois said Wednesday its board of directors agreed to raise the company's common stock dividend 11 percent.

Caterpillar said the second increase in the past year in the dividend lifts the quarterly payment by 4 cents to 41 cents a share of common stock, or $1.64 annually.

The new payment will be made Aug. 20, to shareholders of record July 20.

Caterpillar has increased its cash dividend 11 times -- and nearly 1,000 percent -- since 1993, on a split-adjusted basis.

Caterpillar Chairman and Chief Executive Officer Jim Owens said, "Today's dividend increase is just one example of our ongoing commitment to improve shareholder value and deliver attractive returns on an investment in Caterpillar.

"Caterpillar is a dynamic, profitable company committed to growth in every region of the world and in every industry we serve. Our strong financial position and cash flow, along with solid operational performance, should result in continued shareholder satisfaction. By approving this increase, the board of directors is reinforcing management's strong confidence in the company's future," Owens said.