Caterpillar (NYSE:CAT) has announced an 8% rise in its quarterly dividend, now set at $1.30 per share. The company also expanded its share repurchase authorization by $20 billion, raising the total capacity to $21.8 billion.

Chairman and CEO Jim Umpleby pointed to the company's strong free cash flow from its Machinery, Energy & Transportation (ME&T) operations as a crucial factor in these financial moves. He stated that the dividend increase and expanded share repurchase program are part of Caterpillar's long-term growth strategy and its dedication to returning substantial ME&T free cash flow to shareholders.

This latest dividend hike marks the 29th consecutive year of annual dividend increases for the company.