Uncontrollable macro factors have worked against Caterpillar (CAT - Get Report) over the past three years, causing the stock to significantly underperform the market. While the business is cyclical, the company's hefty cash pile on hand, consistent free cash flow generation, and moderate payout ratios create strong cushion for the dividend and appear to offer double-digit dividend growth potential when its markets eventually rebound.
Timing the bottom of the current down cycle is impossible, but the stock's 4.4% dividend yield (higher than 73% of all other dividend stocks in the market) and reasonable forward price-to-earnings multiple of 14.5 indicate the stock's relative attractiveness for very long-term focused dividend investors. The reasons for Caterpillar's success over its 85+ years of being in business continue to hold true today with its dealer network, and the company is quickly integrating new technologies that will widen its moat. For these reasons, we believe Caterpillar offers compelling total return potential over the next few years and include the company in our Top 20 Dividend Stocks list.
Source: The Street
Related Articles:
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
- Stock Dividends - The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
Caterpillar's 4.4% Dividend Yield Looks Attractive
Posted by D4L | Friday, October 16, 2015 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
Howdy,
Caterpillar is truly one fine company. I'm concidering buying in at these levels below $70. They are surely alive and kicking 50 years from now, still rising dividends.
Best regards petrusko