This Blue-Chip Dividend Stock Could Be the Next AI ‘Power Play’

Core Insights - Caterpillar (CAT) is emerging as a significant beneficiary of the AI boom, leveraging its established position in heavy machinery to capitalize on the growing demand for power infrastructure driven by AI [1][2] Company Overview - Caterpillar is a leading global industrial firm specializing in construction and mining equipment, diesel and natural-gas engines, industrial gas turbines, and related services, with a market capitalization of approximately $230.2 billion [3] Stock Performance - CAT stock has shown exceptional performance, rising 35% year-to-date and hitting a record high of $511.50 on October 10, with a recent surge of 16% over the past month [4] - Over the past 52 weeks, CAT stock has increased by 24% [5] Financial Metrics - CAT stock currently trades at a forward earnings multiple of 27.9, which is a premium compared to the sector median and its historical average [6] - The company has a strong dividend history, with 31 consecutive years of dividend increases, and recently approved a quarterly dividend of $1.51 per share, reflecting a 7% increase, resulting in an annualized dividend of about $6.04 and a yield of 1.21% [6]