Caterpillar Hikes Dividend

Its shareholder payout jumps to 36 cents from 30 cents.
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Caterpillar

(CAT) - Get Report

plans to increase its shareholder payout by 20%.

The Peoria, Ill., industrial-machine giant said Wednesday that it will now pay a quarterly dividend of 36 cents a share, up from its prior payout of 30 cents.

This is the third consecutive year that Caterpillar has increased its dividend by at least 20%. The latest dividend is payable Aug. 20 to shareholders of record July 20.

"This increase reflects the Board of Directors' continued confidence in Caterpillar's long-term outlook," said Caterpillar Chairman and Chief Executive Jim Owens in a statement.

Shares of Caterpillar, a

Dow

component, recently were up 33 cents, or 0.4%, to $78.41.