When will the new dividend be paid?

The dividend is payable on August 19 to shareholders of record as of July 19.

Why is the capital-return mix important for Caterpillar?

The mix of dividends and buybacks helps the company optimize its tax profile, as buybacks may be more tax-efficient.

Is Caterpillar continuing its share buyback program?

Yes, the company continues its share buyback program alongside the dividend hike.

Caterpillar (CAT) Hikes Dividend 8%, Boosts Buyback Program

Caterpillar Inc. (NYSE:CAT) announced an 8% increase in its quarterly dividend to $1.63 per share, payable August 19, while maintaining its share buyback program, making the capital-return mix key to its tax profile.

July 8, 2026

2 min read

Source: Insider Monkey

Key Numbers

dividend increase cents

dividend increase percent

new quarterly dividend

1.63

Caterpillar Inc. (NYSE:CAT) raised its quarterly dividend by 12 cents (8%) to $1.63 per share, payable on August 19 to shareholders of record as of July 19. The move is part of the company's strategy to enhance shareholder returns, alongside its ongoing share buyback program.

Dividend Details

The board increased the quarterly dividend from $1.51 to $1.63 per share, marking the latest in a series of consistent hikes that reflect Caterpillar's commitment to returning capital to shareholders.

Tax Context

Caterpillar is among dividend stocks that prompt investor questions about tax efficiency. The mix of dividends and buybacks allows the company to optimize its tax profile, as buybacks are taxed at a lower rate than dividends in some jurisdictions.

What This Means for Investors

The dividend hike underscores Caterpillar's strong cash flows and management's confidence in future performance. Income-seeking investors may find the stock attractive, especially with the buyback program supporting share price.

Frequently Asked Questions

Caterpillar raised its quarterly dividend by 12 cents (8%) to $1.63 per share.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.