Caterpillar (CAT): A Must-Buy Dividend Stock Built for Long-Term Investors

Core Insights - Caterpillar Inc. (NYSE:CAT) is recognized as a leading dividend stock suitable for long-term investors [2][4] - The company has diversified its business beyond heavy machinery into brand licensing and financial services [3] - Despite challenges from tariffs, Caterpillar's stock has seen a significant increase, reflecting strong investor confidence [4] Business Overview - Caterpillar Inc. is a global leader in heavy machinery, producing construction and mining equipment, diesel and natural gas engines, industrial turbines, and diesel-electric locomotives [2] - The company operates through a comprehensive dealer network that spans every continent [2] Financial Performance - Caterpillar has maintained a 31-year streak of dividend growth, making it attractive for income-focused investors [5] - On October 6, the company declared a quarterly dividend of $1.51 per share, consistent with previous dividends, resulting in a dividend yield of 1.21% as of October 9 [5] Market Challenges - Tariffs have presented challenges for the company, with projected costs reaching $1.8 billion by 2025 [4] - A recent federal appeals court ruling has introduced uncertainty regarding the future of many Trump-era tariffs [4]