In the latest market close, Caterpillar (CAT) reached $325.14, with a +0.85% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.03%.The construction equipment company's stock has dropped by 11.12% in the past month, falling short of the Industrial Products sector's loss of 4.58% and the S&P 500's gain of 3.34%.Investors will be eagerly watch ...

The heavy machinery company has a bright future, but is it a good value right now?Caterpillar (CAT -1.50%) stock is down almost 14% from its all-time high, presenting a potential entry point for long-term investors. The question remains: Is now the right time to seize this opportunity? Here's what you need to know before considering a position.The long-term case for investing in CaterpillarAlthough it may be seen as an old-economy stock, Caterpillar might surprise many investors due to its exposure to a cou ...

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Caterpillar might be a cyclical stock but has almost been a four-bagger in just five years.Caterpillar (CAT -0.72%) is an economic bellwether, given its leadership in heavy machinery for key sectors like construction, mining, and energy. It's a cyclical stock, but you might be surprised by the kind of money its patient investors have made. Caterpillar stock has crushed the Dow Jones Industrial Average over time, whether you look back three, five, or 10 years.The Dow Jones is an iconic index that's considere ...

Core Viewpoint - Caterpillar has approved an 8% increase in its quarterly dividend, raising it to $1.41 per share, and has added $20 billion to its share repurchase authorization, reflecting strong financial health and commitment to returning value to shareholders [1][2]. Financial Performance - Caterpillar generated a record Machinery, Energy & Transportation (ME&T) free cash flow of $10 billion in 2023 and returned a record $7.5 billion to shareholders through share repurchases and dividends [2]. - The company reported an operating cash flow of $2.1 billion in Q1 and ended the quarter with approximately $5 billion in cash and cash equivalents, alongside $2.2 billion in liquid marketable securities [3]. - The ME&T free cash flow for the quarter was $1.3 billion, with total shareholder returns amounting to $5.1 billion, including $0.6 billion in dividends and $4.5 billion in share repurchases [3]. Dividend History and Growth - Caterpillar has consistently increased its dividends for 30 consecutive years, maintaining its status as a dividend aristocrat, and has paid cash dividends every year since its inception [2]. - The company has a five-year dividend growth rate of 6.8%, with the previous dividend having a payout ratio of 23.7%, higher than the peer average of 22.6% [3]. Market Position and Expectations - Caterpillar has experienced year-over-year earnings growth for thirteen consecutive quarters, with a backlog of $27.9 billion at the end of Q1 [4]. - The company anticipates revenues in 2024 to be similar to the record levels of 2023, supported by strong underlying end markets and services revenue growth [4]. - Expected adjusted operating margin for 2024 is projected to be around 19.9% on revenues of $66.7 billion [4]. Segment Performance - The Construction Industries segment is expected to benefit from rising construction activities, while the Resource Industries segment will see growth driven by demand for commodities related to the energy transition [5]. - Strong order rates in the Energy & Transportation segment are anticipated to support revenue growth [5]. Cash Flow and Investment Plans - Caterpillar expects free cash flow in 2024 to be in the top half of the range of $5-$10 billion, driven by healthy customer demand and strong operating performance [5]. - The company has budgeted $2-$2.5 billion for capital expenditures, focusing on investments in autonomy, alternative fuels, connectivity, and digital and electrification [5]. Stock Performance - Over the past year, Caterpillar's stock has gained 34%, outperforming the industry growth of 27.8% and the S&P 500's 17.2% [7].

The latest trading session saw Caterpillar (CAT) ending at $328.73, denoting a +0.43% adjustment from its last day's close. This change lagged the S&P 500's 0.85% gain on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 1.53%.Heading into today, shares of the construction equipment company had lost 8.62% over the past month, lagging the Industrial Products sector's loss of 5.33% and the S&P 500's gain of 3.11% in that time.The investment community will be paying close attentio ...

Key TakeawaysCaterpillar said Wednesday it expanded its share repurchase plan and raised its quarterly dividend.The maker of construction and mining equipment added $20 billion to its current stock buyback plan, and lifted its dividend over 8% to $1.41.The company said it plans to return most of its free cash flow from its main business to shareholders. Caterpillar (CAT) said Wednesday that it expanded its stock buyback plan and raised its dividend.  The manufacturer of construction and mining equipment ann ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

narawon/E+ via Getty Images Investment Thesis Caterpillar Inc. (NYSE:CAT) has beat consensus EPS forecasts in 15 of the last 16 quarters. We detail below the fundamental and macro drivers for why we expect that trend to continue, and why, we believe, it will drive a re-rating in the shares. We see a potential upside of as much as ~45%. We recommend a Buy on CAT stock. What does Caterpillar do? Founded in 1925, Caterpillar sells bulldozers, excavators, etc. to the construction and infrastructure markets, sel ...

IRVING, Texas, June 12, 2024 /PRNewswire/ -- The Board of Directors of Caterpillar Inc. (NYSE: CAT) voted today to raise the quarterly dividend by eleven cents, an 8% increase, to one dollar and forty-one cents ($1.41) per share of common stock, payable August 20, 2024, to shareholders of record at the close of business on July 22, 2024. The Board of Directors also added $20 billion to its current share repurchase authorization, which was launched in 2022 with no expiration date. With the new authorization, ...