Oct. 15--PEORIA -- Caterpillar Inc.'s board of directors on Wednesday declared a quarterly cash dividend of 42 cents a share, maintaining its previous dividend, the company said in a news release.

The dividend will be payable Nov. 20 to shareholders of record at the close of business Oct. 26, the release said.

Caterpillar Chairman Jim Owens credited the company's quick response to the economic downturn -- including layoffs of more than 20,000 employees, rolling one- or two-week shutdowns of its plants and trimming other costs -- for helping it to avoid cutting the dividend.

"Team Caterpillar's remarkable performance and rapid response to the global economic downturn over the last year has been a fundamental factor in our ability to maintain an attractive dividend," Owens said in the news release.

"Our financial strength during this recession enables Caterpillar to continue a long tradition of rewarding stockholders. In fact, over the last 10 years, our total stockholder return (stock appreciation plus dividends) is more than 200 percent."

Many companies have been forced to cut dividends to shareholders during the recession and one Wall Street analyst who follows Caterpillar -- Andrew Obin of Merrill Lynch -- has said he believes Caterpillar may have to, as well.

The 42-cent dividend maintains the dividend rate from the previous quarter.

Including this dividend, Caterpillar has paid a cash dividend every year since the company was formed in 1925 and its cash dividend has nearly tripled since 1998.

-----

To see more of the Journal Star or to subscribe to the newspaper, go to http://www.pjstar.com.

Copyright (c) 2009, Journal Star, Peoria, Ill.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:CAT, NYSE:MER,

A service of YellowBrix, Inc.