Caterpillar Dividend Hike Leaves Only A Few More DJIA Dividend Hikes Left This Year
Caterpillar Inc. (NYSE: CAT) has just done exactly what we expected with a dividend hike. We recently highlighted that it was one of only a few remaining DJIA stocks which will hike their dividends this year. The new payout will…
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We just noted last week how Caterpillar has had 4 consecutive payouts of $0.46 per share and the last payment was April 19 and that the hike would come very soon.
Today’s dividend hike does not jeopardize Caterpillar’s capital requirements as growth slows in the key BRIC nations. With earnings estimates of $9.73 EPS in 2012 and $11.47 EPS, the new rate of $2.08 per year is 21.3% of normalized earnings from operations for the next year. That is a low payout ratio for a company that is this well-heeled and this entrenched in the global infrastructure building.
Here are the other remaining DJIA components we expect dividend hikes from later in 2012.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.