Caterpillar (CAT) will raise its quarterly dividend by 10.3 percent to $0.86 per share in 2018. This follows a one cent dividend hike by the equipment maker last year and marks the 25th consecutive year of dividend increases by the company.

The next dividend is payable August 20, 2018, to shareholders of record at the close of business on July 20, 2018. The new annual dividend of $3.44 per share yields 2.2% at the current stock price of $155.

"Increasing our dividend builds on our long history of dividend growth," said Caterpillar CEO Jim Umpleby. "It also demonstrates our confidence in our strategy to pursue long-term profitable growth to deliver increased value to shareholders."

Caterpillar has paid higher dividends to its shareholders for 24 consecutive years and, at $0.86 per share, the company's quarterly cash dividend has more than doubled since 2009.

Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. Caterpillar has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933.