LONDON, UK / ACCESSWIRE / July 18, 2018 / Active-Investors has a free review on Caterpillar Inc. (NYSE: CAT) following the Company's announcement that it will begin trading ex-dividend on July 19, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on July 18, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on CAT:
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On June 13, 2018, Caterpillar's Board of Directors voted to increase the quarterly cash dividend by $0.08 per share, a 10% increase to $0.86 per share of common stock, payable August 20, 2018, to shareholders of record at the close of business on July 20, 2018.
Caterpillar's indicated dividend represents a yield of 2.44%, which is more than double than the average dividend yield of 1.14% for the Industrial Goods sector. 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 has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933.
Caterpillar has a dividend payout ratio of 32.0%, which means that the Company spends approximately $0.32 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
As per analysts' estimates, Caterpillar is forecasted to report earnings of 12.06 per share for the next year, which is substantially higher than the Company's annualized dividend payout of $3.44 per share.
As of March 31, 2018, Caterpillar's cash and cash equivalents totaled $7.89 billion compared to $8.26 billion as on March 31, 2017. For the three months ended March 31, 2018, the Company's net cash provided by operating activities was $935 million compared to $1.54 billion for the year ago corresponding period. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain its dividend distribution for a long period.
On July 09, 2018, Caterpillar announced that its board of directors has appointed Ogi Redzic as a Vice President of the Company. He will lead Caterpillar's Digital Enabled Solutions Division (DESD), effective July 30, 2018, and report to Group President of Customer & Dealer Support Bob De Lange.
Redzic brings with him more than 20 years of global experience in delivering digital solutions like connected vehicles, digital services and autonomous technologies, most recently in the automotive industry. Prior to Redzic's role at Renault Nissan Alliance, he held leadership positions at Mitsubishi, Nokia HERE, NAVTEQ, PCTEL, Inc., cyberPIXIE, and Motorola. He holds an MBA from Northwestern University's Kellogg School of Management and a master's degree in computer science from the Illinois Institute of Technology.
About Caterpillar Inc.
With 2017 sales and revenues of $45.462 billion, Caterpillar is the world's leading 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 primary segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment.
Stock Performance Snapshot
July 17, 2018 - At Tuesday's closing bell, Caterpillar's stock marginally rose 0.63%, ending the trading session at $138.95.
Volume traded for the day: 3.30 million shares.
Stock performance in the past twelve-month period – up 27.66%
After yesterday's close, Caterpillar's market cap was at $83.09 billion.
Price to Earnings (P/E) ratio was at 18.17.
The stock has a dividend yield of 2.48%.
The stock is part of the Industrial Goods sector, categorized under the Farm & Construction Machinery industry. This sector was up 0.5% at the end of the session.
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