Caterpillar (CAT) on June 8, 2022, announced that it will raise its quarterly dividend by 8.1% to $1.20 quarterly. The heavy equipment maker has now raised its annual dividend for the 29th consecutive calendar year. The next CAT dividend is payable August 19, 2022, to shareholders of record at the close of business on July 20, 2022. A new annualized rate of $4.80 per share yields 2.1% at a stock price of $224.

"Our dividend increase reflects our strong balance sheet and liquidity position as well as confidence in continued strong free cash flow generation from Machinery, Energy & Transportation (ME&T)", said Caterpillar Chairman and CEO Jim Umpleby in the press release announcing this new dividend hike.

Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally 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.