Caterpillar has increased its annual dividend for 31 consecutive years, including a 7% raise in June 2025 that outpaced inflation by more than twofold. Over the past quarter-century, its dividend payments have tripled, reflecting the company’s commitment to returning capital to shareholders. During severe downturns — notably the 2008–2009 financial crisis and the 2020 pandemic — Caterpillar maintained and even boosted its dividend by 16.7% and 7.8%, respectively, underscoring management’s resolve to reward investors despite revenue declines of over 35% during those periods.

Through Q3 2025, Caterpillar reported earnings of $19.48 per share and paid an annual dividend of $6.04, resulting in an earnings payout ratio of 30%. Free cash flow of $5.4 billion covered $2.0 billion in dividend payments at a payout ratio of 37%, while operating cash flow of $8.1 billion provided a 4.1× coverage ratio. The company’s balance sheet shows $41.5 billion in total debt against $20.7 billion in equity (2.0× debt-to-equity) and $7.5 billion in cash, with net debt-to-EBITDA at 2.4× and interest coverage of 8.8×. These metrics leave ample cushion to sustain the dividend through potential cyclical downturns.

On January 14, 2026, 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 Building Construction Products — will assume the role of group president of Construction Industries. Shurman’s responsibilities will encompass Earthmoving, Excavation, BCP, China Operations, Cat Rental & Used, and both Core and Growth Regions customer solutions, as well as Supply Management. This succession plan ensures continuity in executing Caterpillar’s strategy across its largest segment.