Caterpillar's

(CAT) - Get Report

board raised its quarterly dividend by 5 cents to 30 cents a share and said 2006 should be the company's third consecutive year of record results.

The new dividend rate will be paid Aug. 19 to stockholders of record July 20.

The Peoria, Ill., construction-equipment maker said the announcement "reflects the board of directors' confidence in Caterpillar's long-term outlook."

Factoring in this latest dividend hike, Caterpillar's payout has tripled since 1996. Shares of Caterpillar were up 37 cents, or 0.6%, to $66.70.