Caterpillar Board Approves Continued Cash Returns for Shareholders
Irving, Thursday, 11 December 2025.
Caterpillar maintains its $1.51 dividend, continuing a 32-year legacy of reliable returns as a Dividend Aristocrat, with the next payment scheduled for February 19, 2026.
Details of the Dividend Declaration
On Wednesday, December 10, 2025, the Board of Directors for Caterpillar Inc. (NYSE: CAT) voted to maintain the company’s quarterly cash dividend at $1.51 per share of common stock [1]. Shareholders of record at the close of business on January 20, 2026, will be eligible for this payment, which is scheduled for distribution on February 19, 2026 [1]. For investors managing their portfolios around these dates, the ex-dividend date has been set for January 16, 2026 [2].
Annualized Yield and Returns
This declaration maintains an annualized dividend rate of $6.04 per share [2]. Based on current valuations, this payout structure offers an annual yield of approximately 1 percent [2]. The decision to hold the dividend steady reflects a continuation of the company’s established capital allocation strategy as it enters the new fiscal year.
A Legacy of Financial Discipline
Caterpillar’s commitment to shareholder returns is deeply entrenched in its corporate history. The industrial giant has paid a cash dividend every year since its formation and has maintained a streak of quarterly dividends since 1933 [1]. Notably, the company is recognized as a member of the S&P 500 Dividend Aristocrats Index, a distinction earned by paying higher annual dividends to shareholders for 32 consecutive years [1]. This long-term consistency underscores the financial stability of the Irving, Texas-based manufacturer [1].
Operational Context
Supporting these returns is a robust operational framework. As the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, and industrial gas turbines, Caterpillar reported sales and revenues of $64.8 billion in 2024 [1]. The company generates this revenue through three primary segments: Construction Industries, Resource Industries, and Power & Energy [1].
Market Valuation and Analyst Sentiment
As of today, December 11, 2025, market reaction to Caterpillar’s performance remains dynamic. The stock was trading at $598.69, with the company’s market capitalization reaching $288.88 billion [3][4]. This valuation secures Caterpillar’s position as the 46th most valuable company globally [4]. Over the last year, the stock has demonstrated significant momentum, delivering a 1-year return of +58.24% [3]. The share price recently tested new heights, hitting a 52-week high of $617.23 on December 10, 2025 [3].
Valuation Metrics
despite the strong historical performance, some analysts maintain a cautious outlook. As of December 11, 2025, approximately 48.39% of analysts recommend a ‘HOLD’ rating for the stock [3]. The average target price sits at $587.67, which implies a potential downside of -4.498 percent compared to the reference price of $615.35 noted in recent trading analysis [3]. However, from a valuation perspective, Caterpillar’s Price-to-Earnings (P/E) ratio stands at 30.51x, which is currently lower than the industry average P/E ratio of 35.14x, suggesting the stock may still hold relative value against its peers [3].