Caterpillar shareholders will 46 cents on 20 August, up from 44 cents last quarter, representing a 5% increase.
"In addition to increasing the dividend, our focus on cash flow and the strength of our financial position enabled us to finance the Bucyrus acquisition without the need for equity and is enabling substantial investment to prepare Caterpillar for the developing improvement in the business cycle and to achieve our long-term financial goals," said Caterpillar chairman and CEO Doug Oberhelman
"It looks like 2011 will be a good year with demand for our products continuing to improve and our focus squarely on execution and controlling costs. As a result, we are reaffirming our financial outlook for 2011. We expect sales and revenues in a range from $52bn to $54bn and profit between $6.25 and $6.75 per share," Mr Oberhelman added.
Caterpillar has now increased its dividends to shareholders for 18 years in a row. Since 1998, the company's cash dividend has more than tripled.
Caterpillar has never failed to pay a cash dividend in all its 86-year history, and has paid a dividend every quarter since November 1933.
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