#7 - Caterpillar (NYSE:CAT)
Caterpillar (NYSE:CAT) has had a volatile beginning to 2022. The company entered the year with many analysts expecting the company to be a big winner of the infrastructure bill that passed the U.S. Congress in 2021.
But that optimism was tempered by the outbreak of the war between Russia and Ukraine. And now concerns about inflation and a slowing economy continue to weigh on CAT stock. But the stock is holding its own and is “only” down about 15% for the year.
However, the reason you’re reading this is to find stocks that are likely to deliver a solid total return even in a bear market. Helping Caterpillar’s cause is a juicy dividend that currently pays out $4.44 on an annual basis and has a dividend yield of 2.48%. The company has increased its dividend by approximately 9% in the last three years. And the projected earnings growth over the next five years makes the dividend growth sustainable.
About Caterpillar
Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.
More about Caterpillar- Current Price
- $344.72
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $372.92 (8.2% Upside)
Dividend aristocrats make a commitment to grow their dividends. This means investors can focus less on dividend yield and more on the amount of the dividend which is likely to grow. And, for investors who like to reinvest their dividends, a growing dividend allows a portfolio to benefit from the effects of compounding.
However, even though these companies all share many desirable attributes, some stocks are better buys at certain times. The stocks in this presentation are recommendations based on the market conditions that exist at this time. You may prefer to invest in other stocks or sectors.
And that's another reason to limit your search with dividend aristocrats. The list of dividend stocks is long. But the list of dividend aristocrats is significantly shorter. In fact, as of June 30, 2022 there were just 65 companies with this designation.
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