Caterpillar Announces Dividend Increase

Caterpillar hikes dividend 13% says this:

"Caterpillar Inc.'s board of directors on Wednesday voted to boost the company's quarterly cash dividend by six cents, or 13%, to 52 cents a share. The new dividend will be payable Aug. 20, 2012 to holders of record as of the close of business on July 20. "We aim to deliver total stockholder return in the upper 25% of the S&P 500 and this 13% increase in our dividend represents our continued commitment to providing value to stockholders," said Doug Oberhelman, Caterpillar's CAT -1.49% chief executive. He noted that the company has paid "a cash dividend every year since 1925 and has paid a dividend every quarter since November 1933."

And Caterpillar Lifts Dividend by 13% to $0.52 says this about the dividend increase:

"Construction equipment maker Caterpillar Inc. (CAT) on Wednesday hiked its quarterly cash dividend by six cents to $0.52 cents per common stock share, payable August 20 to stockholders as of July 20. The $0.52 dividend is an increase of 13 percent over the previous $0.46 per share dividend.

“As part of our strategy, over the business cycle, we aim to deliver Total Stockholder Return in the upper 25 percent of the S&P 500 and this 13 percent increase in our dividend represents our continued commitment to providing value to stockholders,” said Doug Oberhelman, Caterpillar chairman and CEO, in a statement, noting that the company has paid a dividend every quarter since November 1933.

Oberhelman also included a plug for dividends ahead of possible tax changes next year that could affect dividend taxation.

“We believe dividend payments are a good way to reward long term investors in Caterpillar, and we hope policy makers in the United States will take steps to change tax policy rather than punishing long term investors,” he said. “Without such a change, the tax rate on dividend income will nearly triple for many stockholders next year.”"

Thanks. Bob.