Caterpillar Inc. (NYSE:CAT) Shares Will Pay Quarterly Dividend of $1.63

Key Points

• Caterpillar will pay a quarterly dividend of $1.63 per share on November 19 to shareholders of record as of October 19. The dividend equates to $6.52 annually, a 0.9% yield, and marks the company’s 30th consecutive year of dividend increases.
• Caterpillar reported quarterly earnings of $8.17 per share, beating estimates of $6.22, while revenue reached $20.54 billion, up 23.7% year over year and above analyst expectations.
• The stock fell to $747.18 during trading, while analysts expressed more cautious views: Oppenheimer cut its price target but retained an “outperform” rating, and other analysts cited elevated valuation and potential slowing in dealer restocking and data-center-related demand.

Caterpillar Inc. (NYSE:CAT - Get Free Report) announced a quarterly dividend on Wednesday, October 14th. Shareholders of record on Monday, October 19th will be paid a dividend of $1.63 per share by the industrial products company on Thursday, November 19th. This represents a $6.52 annualized dividend and a yield of 0.9%. The ex-dividend date is Monday, October 19th.

Caterpillar has increased its dividend payment by an average of 0.1% per year over the last three years and has raised its dividend annually for the last 30 consecutive years. Caterpillar has a payout ratio of 30.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect Caterpillar to earn $33.18 per share next year, which means the company should continue to be able to cover its $6.52 annual dividend with an expected future payout ratio of 19.7%.

Caterpillar Stock Performance

NYSE CAT traded down $25.60 during trading hours on Wednesday, hitting $747.18. The company had a trading volume of 3,350,930 shares, compared to its average volume of 2,817,167. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm has a market cap of $343.46 billion, a P/E ratio of 32.15, a price-to-earnings-growth ratio of 1.38 and a beta of 1.58. Caterpillar has a fifty-two week low of $510.21 and a fifty-two week high of $1,073.46. The business has a fifty day simple moving average of $819.49 and a 200-day simple moving average of $855.64.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company's quarterly revenue was up 23.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.72 earnings per share. Equities analysts predict that Caterpillar will post 27.49 EPS for the current year.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Oppenheimer lowered its Caterpillar price target to $1,009 from $1,118 but maintained an “outperform” rating. The revised target still implies substantial upside from recent levels, signaling that the firm views the pullback as excessive. Oppenheimer Caterpillar price-target report
• Positive Sentiment: Caterpillar maintained its quarterly dividend at $1.63 per share, payable Nov. 19 to shareholders of record Oct. 26. The company has paid annual cash dividends since its founding and quarterly dividends since 1933, supporting its income-investment appeal. Caterpillar Maintains Dividend
• Positive Sentiment: Commentary points to potential longer-term support from Caterpillar’s planned $1 billion North Carolina manufacturing investment, the Fabick CAT acquisition, infrastructure spending and data-center construction demand. Caterpillar Stock May Be Undervalued
• Neutral Sentiment: Caterpillar is receiving unusually high investor attention, but the Zacks coverage does not identify a new fundamental catalyst. Its latest reported quarter showed strong momentum, with revenue up 23.7% year over year and earnings well above expectations.
• Negative Sentiment: Oppenheimer’s target reduction, along with recent target cuts from Citi and Truist, is reinforcing concerns that expectations had become too elevated after CAT’s powerful rally.
• Negative Sentiment: The market is questioning whether the premium assigned to Caterpillar’s data-center power business can persist. Analysts also warn that dealer restocking and project-related demand may slow, challenging earnings growth for a cyclical equipment maker valued at a substantial premium to the broader market. Caterpillar Data Center Premium Report
• Negative Sentiment: Erste Group modestly reduced its FY2027 EPS estimate to $32.14 from $32.28 and maintained a “hold” rating, adding to the cautious analyst tone.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.

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