Caterpillar Inc. (NYSE:CAT) Plans Quarterly Dividend of $1.51

Key Points

• Quarterly dividend of $1.51 declared, payable May 19 to shareholders of record April 20 (annualized $6.04, ~0.8% yield); the company has increased its dividend for 30 consecutive years and carries a payout ratio of about 28.6%, indicating dividend coverage.
• Q4 results topped expectations with $5.16 EPS vs. $4.67 estimate and revenue of $19.13B (+17.9% YoY); shares traded up to $771.46, giving a market cap near $359B and a P/E around 41, while analysts expect roughly $22.11 EPS next year.
• Significant insider selling occurred recently—insiders sold 125,950 shares worth about $88.6M over the last 90 days, leaving insiders with roughly 0.33% ownership.

Caterpillar Inc. (NYSE:CAT - Get Free Report) declared a quarterly dividend on Wednesday, April 8th. Shareholders of record on Monday, April 20th will be given a dividend of 1.51 per share by the industrial products company on Tuesday, May 19th. This represents a c) annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, April 20th.

Caterpillar has increased its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 30 consecutive years. Caterpillar has a dividend payout ratio of 28.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Caterpillar to earn $22.11 per share next year, which means the company should continue to be able to cover its $6.04 annual dividend with an expected future payout ratio of 27.3%.

Caterpillar Stock Performance

CAT traded up $47.02 during trading on Wednesday, hitting $771.46. 2,919,438 shares of the company traded hands, compared to its average volume of 2,806,790. Caterpillar has a one year low of $269.13 and a one year high of $789.81. The stock's fifty day moving average is $718.91 and its 200 day moving average is $618.80. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. The firm has a market cap of $358.95 billion, a P/E ratio of 40.99, a price-to-earnings-growth ratio of 1.69 and a beta of 1.52.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping the consensus estimate of $4.67 by $0.49. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. During the same quarter in the previous year, the firm posted $5.14 earnings per share. The company's revenue for the quarter was up 17.9% on a year-over-year basis. As a group, equities analysts predict that Caterpillar will post 19.86 EPS for the current fiscal year.

Insider Transactions at Caterpillar

In related news, CEO Joseph E. Creed sold 2,500 shares of the stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $718.93, for a total transaction of $1,797,325.00. Following the sale, the chief executive officer owned 35,083 shares of the company's stock, valued at approximately $25,222,221.19. This represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Denise C. Johnson sold 39,138 shares of Caterpillar stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $681.08, for a total value of $26,656,109.04. Following the transaction, the insider directly owned 43,350 shares of the company's stock, valued at $29,524,818. The trade was a 47.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 125,950 shares of company stock valued at $88,577,390. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

A number of large investors have recently modified their holdings of the company. Torren Management LLC bought a new position in Caterpillar in the 4th quarter valued at $27,000. Marquette Asset Management LLC raised its position in shares of Caterpillar by 1,060.0% in the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company's stock worth $28,000 after buying an additional 53 shares in the last quarter. Frazier Financial Advisors LLC raised its position in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after buying an additional 33 shares in the last quarter. IFS Advisors LLC bought a new stake in Caterpillar during the fourth quarter valued at $31,000. Finally, Joseph Group Capital Management bought a new position in Caterpillar in the 3rd quarter worth about $32,000. 70.98% of the stock is currently owned by institutional investors.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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