Caterpillar Inc.’s share price down, increases its quarterly dividend by 17%, reaches a 46-million-dollar settlement over ship fire

Caterpillar Inc. announced that it made a decision to increase its quarterly dividend to 70 cents per share. The dividend raise represents a 17% increase.

Mr. Doug Oberhelman, the current Chairman and Chief Executive Officer of Caterpillar Inc. made a news release, which was cited by the Wall Street Journal: “Despite business and economic uncertainties around the world, our balance sheet has remained strong—the strongest its been in more than two decades—positioning us to perform through the cycles.”

This step means that the dividend yield of the company will amount to about 2.6%. According to the news release posted by Caterpillar Inc., the dividend is planned to be paid to the companys shareholders of record at the close of business on July 21st.

In April, Caterpillar shared that its profit for the first quarter of the current financial year increased due to the fact the company reduced its expenses. However, it decreased its projection for the mining-equipment sales growth.

The news release made by the company comes at a moment when Caterpillar Inc. paid 46 million dollars to settle a lawsuit. The case in question was over claims that a fire, which demolished a ship in Mobile, Alabama, was caused by a defective engine manufactured by Caterpillar. According to disclosed court records, the company made an agreement to pay 12 million dollars to Bender Shipbuilding & Repair Co. and 22 million dollars to Seacor Marine LLC. The rest of the sum was paid to six insurance companies.

Ms. Lucy Tufts, who is an attorney of Bender Shipbuilding & Repair Co. said in an interview, which was cited by Bloomberg: “The fire burned for more than 24 hours before it was brought under control.” Mr. Rachel Potts, who is a spokeswoman of Caterpillar Inc. made an official e-mailed statement, saying that the company had no comment on the court settlement.

Caterpillar Inc. was 0.57% down to close at 108.69 dollars per share yesterday, marking a one-year change of +30.14%. According to the information published on CNN Money, the 23 analysts offering 12-month price forecasts for Caterpillar Inc. have a median target of 110.00, with a high estimate of 125.00 and a low estimate of 95.00. The median estimate represents a +1.21% increase from the last price of 108.69.