June 12 (Reuters) - Caterpillar has raised its quarterly dividend by 8% and its share repurchase authorization by $20 billion, the company said on Wednesday, sending its shares up 2% in morning trading.

With the expanded authorization, the company may now repurchase up to $21.8 billion of its common stock.

The company increased its dividend to $1.41 per common share payable in August.

Caterpillar has paid higher annual dividends to shareholders for 30 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)