CAT: Despite Tough Times, Company Maintains 42 Cent Dividend

Caterpillar Inc. said it has declared a quarterly cash dividend of 42 cents per share, up 17%, maintaining the heavy equipment maker’s payout rate since June, the Associated Press reports. The company saw demand plummet at the end of 2008 due to slumping commodity prices, tight credit markets and a decline in home building.

In response, Caterpillar, which employes about 112,000 people worldwide, said in January that it would begin job cuts that would ultimately eliminate 20,000 positions. The company also said it would reduce executive compensation by up to 50% and offer buyouts to about 25,000 U.S.-based employees.

Last month, Caterpillar announced plans to lay off more than 2,400 employees at five plants in Illinois, Indiana and Georgia.

“Given this challenging environment, and the uncertainty it creates, I am pleased we have maintained our dividend rate for our stockholders,” said Caterpillar Chairman and Chief Executive Jim Owens in a statement.