The cash dividend sits at 70c a share, payable on August 20 to shareholders listed at the close of business on July 21.

“This dividend increase demonstrates our financial strength and confidence in long-term prospects for the company.

“Despite business and economic uncertainties around the world, our balance sheet has remained strong – the strongest it’s been in more than two decades – positioning us to perform through the cycles,” Caterpillar CEO Doug Oberhelman said.

“Our global team has delivered solid operational and financial performance, enabling Caterpillar to return over $5 billion ($A5.3 billion) of capital to stockholders through stock buybacks and dividends since the beginning of 2013.”

Caterpillar has increased the dividends to its stockholders every year for 20 years.

Since 1998, the company’s cash dividends have more than trebled.