LONDON, UK / ACCESSWIRE / July 17, 2017 / Pro-Trader Daily takes a closer look at Caterpillar Inc. (NYSE: CAT) as the Company's stock will begin trading ex-dividend on July 18, 2017. In order to capture the dividend payout, investors must purchase the stock one day prior to the ex-dividend date that is by latest at the end of trading session on July 17, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On June 14, 2017, Caterpillar's Board of Directors voted to increase the quarterly cash dividend by $0.01 to $0.78 per share of common stock, payable August 19, 2017, to shareholders of record at the close of business on July 20, 2017.
"Our improved cost structure, strong balance sheet, and solid cash flow make it possible for us to continue our long history of returning value to shareholders through our dividend," said Caterpillar CEO Jim Umpleby.
Caterpillar's indicated dividend represents a yield of 2.88%, more than double the average dividend yield for the Industrial Goods sector of 1.24%. Caterpillar has paid higher dividends to its shareholders for 23 consecutive years, and since 2007, the Company's cash dividend has more than doubled. Caterpillar has paid a cash dividend every year since the Company was formed and has paid a quarterly dividend since 1933.
Dividend Insights
Caterpillar has a dividend payout ratio of 75.4%, which indicates that the Company distributes approximately $0.75 for every $1.00 earned. The dividend payout ratio reflects how much money 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.
According to analysts' estimates, Caterpillar is forecasted to report earnings of $5.28 in the coming year, which is substantially higher than the Company's annualized dividend of $3.12.
As on March 31, 2017, Caterpillar had cash and cash equivalents worth $9.47 billion, while the Company's current assets totaled approximately $35.55 billion against current liability of $27.64 billion. The strong financial position provides a cushion for the Company to absorb any fluctuations in earnings and pay its dividend without interruption for a long period of time.
About the Company
With 2016 sales and revenues of $38.537 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 product segments: Construction Industries; Resource Industries and Energy & Transportation; and also provides financing and related services through its Financial Products segment.
Recent Development for Caterpillar
On June 28, 2017, Caterpillar announced Doug Hoerr, Vice President of the Material Handling and Underground Division (MH&U), has elected to retire from the Company. Caterpillar's board of directors has appointed a new vice president, and the Company also announced new responsibilities for three current vice presidents.
"For more than 20 years of his career with Caterpillar, Doug worked in a wide range of accounting and finance roles with increasing levels of responsibility and global scope," said Jim Umpleby, Caterpillar's CEO, "In 2012, Doug was named group CFO for Customer & Dealer Support, a position he held until being named a Caterpillar vice president in 2015."
Stock Performance
Caterpillar's share price finished last Friday's trading session at $108.77, marginally advancing 0.28%. A total volume of 4.48 million shares have exchanged hands. The Company's stock price soared 16.83% in the last three months, 15.73% in the past six months, and 35.86% in the previous twelve months. Additionally, the stock surged 17.28% since the start of the year. Shares of the Company have a dividend yield of 2.87% and currently have a market cap of $63.91 billion.
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SOURCE: Pro-Trader Daily