Caterpillar has maintained its dividend through every recession since the modern era began, including the 2008–2009 financial crisis and the 2020 pandemic. In January 2026, the company paid $1.51 per share, lifting its annual payout to $6.04, a 3.4% increase over the prior year and extending a 15-year streak of raises. Over the trailing twelve months to Q3 2025, CAT earned $19.48 per share, resulting in a 30% earnings payout ratio. Free cash flow of $5.4 billion funded $2.0 billion in dividends during the first nine months of 2025, yielding a 37% FCF payout ratio. Operating cash flow of $8.1 billion covered dividend obligations 4.1 times over, providing ample cushion even in a downturn scenario where earnings could fall 40%.

As of Q3 2025, Caterpillar carried $41.5 billion in total debt against $20.7 billion in equity, producing a 2.0x debt-to-equity ratio. Net debt of $34.0 billion divided by $14.0 billion in EBITDA equates to 2.4x leverage, while interest coverage stands at 8.8x based on operating income versus interest expense. The company held $7.5 billion in cash, down from $10.2 billion in 2021, and retained earnings increased from $35.2 billion in 2020 to $64.5 billion, underscoring strong reinvestment of profits. These metrics indicate a balance sheet capable of supporting the dividend through temporary cash-flow disruptions without resorting to external financing.

In the 2020 downturn, net income fell 55% to $3.0 billion, yet free cash flow of $4.2 billion covered the $2.2 billion dividend nearly twice over. CAT maintained the quarterly payout at $1.03 per share while cutting share repurchases from $4.0 billion to $1.1 billion. During the 2008 crisis, revenue dropped 37% and operating margins compressed to 1.8%, but the company remained profitable and upheld its quarterly dividend, pausing only dividend growth before resuming increases once conditions improved.

Caterpillar announced that Tony Fassino, group president of Construction Industries, will retire on May 31, 2026, after 30 years with the company. Effective February 1, 2026, Rod Shurman—currently senior vice president of the Building Construction Products division—will assume the role of group president of Construction Industries. Fassino will serve as group president, retired, through the transition period. Shurman’s responsibilities will cover Earthmoving, Excavation, BCP, China Operations, Cat Rental & Used, Customer Solutions Core and Growth Regions, and Supply Management. The move follows his leadership roles in engineering, operations and as senior vice president of Oil & Gas and Electrification & Energy Solutions since joining in 1997.