Caterpillar Inc dividend – Caterpillar: Low Dividend Yield, But Still A Solid Foundation For Portfolio Building
December 20, 2023
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Caterpillar Inc ($NYSE:CAT). is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Despite its low dividend yield, Caterpillar Inc. still makes for a reliable cornerstone of portfolio building. It is widely known for its durable and reliable products, making it a great option for long-term investing. Its products are used in agricultural, mining, construction, forestry, and waste management industries. Moreover, its diesel-electric locomotives are used by some of the most recognizable railway companies around the world. This has made it an attractive choice for investors looking for stability in their portfolio.
Furthermore, Caterpillar has also been expanding its product portfolio by launching new services such as advanced analytics and fleet management solutions. This diversification reduces the risk associated with investing in the company’s stock. Overall, Caterpillar Inc.’s low dividend yield may be a deterrent to some investors, but its long track record of reliable products and services make it a great option for portfolio building. Its diverse business segments and steady dividend payout also help to reduce the risk associated with investing in its stock.
Dividends – Caterpillar Inc dividend
Looking ahead to 2021 to 2023, dividend yields are estimated at 2.23%, 2.22% and 2.05%, with an average dividend yield of 2.17%. As a result, those looking for a reliable dividend stock could certainly consider investing in Caterpillar Inc. The company has established itself as a dependable source of income year-on-year, and investors can look to the company as a solid foundation for building their portfolios.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Caterpillar Inc. More…
| Total Revenues | Net Income | Net Margin |
| 66.59k | 9.11k | 15.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Caterpillar Inc. More…
| Operations | Investing | Financing |
| 11.62k | -6.16k | -5.02k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Caterpillar Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 86.79k | 66.28k | 40.25 |
Key Ratios Snapshot
Some of the financial key ratios for Caterpillar Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.1% | 35.3% | 18.6% |
| FCF Margin | ROE | ROA |
| 13.0% | 40.0% | 8.9% |
Share Price
Caterpillar Inc, the world’s largest maker of construction and mining equipment, has seen its stock price rise recently, opening at $286.8 on Tuesday and closing at $293.0, up 2.5% from the previous closing price of $285.7. With a strong global presence, CATERPILLAR INC has been a reliable source of consistent growth over the years, and its durable product line means that its products will continue to be in demand in the coming years. Additionally, CATERPILLAR INC has had a history of strong corporate governance and has a history of returning capital to shareholders through share repurchases and dividends. Its durability and strong global presence provide investors with the confidence that their investments will continue to grow in value in the long run. Live Quote…
Analysis
GoodWhale has conducted an analysis of the fundamentals of CATERPILLAR INC and classified the company as a ‘gorilla’, signifying that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. CATERPILLAR INC is strong in dividend, growth, profitability, and medium in asset. Their Star Chart score is 8/10, indicating a strong health score with regard to cashflows and debt, suggesting that the company is capable of sustaining future operations even in times of crisis. Given its strong fundamentals and competitive advantage, CATERPILLAR INC is a great investment opportunity for any type of investor looking for a reliable and consistent return on their investments. It could also be a great option for risk-averse investors who want to invest in a company with a low risk of experiencing a significant drop in its financials. More…
Peers
Caterpillar Inc. is one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company operates in more than 500 locations across six continents. Caterpillar’s products are used in a variety of industries, including construction, mining, forestry, and energy. The company competes with a number of other manufacturers, including CNH Industrial NV, Deere & Co, AGCO Corp, and others.
– CNH Industrial NV ($NYSE:CNHI)
CNH Industrial N.V. is a holding company, which engages in the manufacture of agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles. It operates through the following segments: Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain, and Financial Services. The Agricultural Equipment segment produces and sells agricultural tractors, combines, haytools, sprayers, forage harvesters, implements and related replacement parts. The Construction Equipment segment manufactures and sells backhoe loaders, small and medium tracked excavators, wheeled excavators, skid steer loaders, compact track loaders, wheel loaders, telehandlers, dumpers, motor graders, soil and asphalt compactors, and other equipment. The Commercial Vehicles segment produces and sells light, medium, and heavy-duty trucks under the Iveco brand. The Powertrain segment manufactures and sells engines, transmissions, axles, and components. The Financial Services segment offers wholesale and retail financing products to customers and dealers to purchase equipment. The company was founded on November 12, 2012 and is headquartered in London, the United Kingdom.
– Deere & Co ($NYSE:DE)
As of 2022, Deere & Co has a market cap of 112.07B and a Return on Equity of 25.53%. The company is engaged in the manufacturing and distribution of equipment used in agricultural, construction, forestry, and turf care.
– AGCO Corp ($NYSE:AGCO)
AGCO Corp is a publicly traded company that manufactures and sells agricultural equipment and related products. As of 2022, the company had a market capitalization of 8.31 billion dollars and a return on equity of 16.62%. The company’s products include tractors, combines, hay tools, sprayers, forage equipment, and more. AGCO Corp is headquartered in Duluth, Georgia, and has operations in North America, Europe, South America, and Asia.
Summary
Caterpillar Inc. is an attractive stock for investors looking for a reliable, high-quality addition to their portfolio. Investors can also benefit from the company’s well-developed presence in the construction and mining industries. Caterpillar has invested in research and development, resulting in an expanding portfolio of products and services, and is able to capitalize on large-scale projects and emerging markets. The company’s commitment to health and safety initiatives has helped it remain one of the most trusted names in heavy equipment manufacturing.
In addition, its global presence allows it to take advantage of potential growth opportunities in international markets. With its attractive combination of low dividend yield and long-term growth potential, Caterpillar is well-positioned to help investors build a strong portfolio.
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