Caterpillar Expected to Announce Dividend Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
Caterpillar Inc's stock rose by 5.04% as it crossed above the 5-day SMA, reflecting positive investor sentiment.
The company is expected to announce a dividend increase in June, with analysts forecasting a quarterly dividend of nearly $1.55, representing a 2.65% increase from the previous payout. This announcement would continue Caterpillar's impressive 32-year streak of consecutive dividend growth, showcasing its strong financial health and commitment to returning value to shareholders.
This anticipated dividend increase is likely to attract more investors, reinforcing Caterpillar's reputation for stability and reliability in dividend payments.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 940.480
Low
395.00
Averages
620.54
High
730.00
Current: 940.480
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its segments include Construction Industries, Resource Industries and Power & Energy. It also provides financing and related services through its Financial Products segment. Construction Industries segment is responsible for supporting customers using machinery in infrastructure and building construction applications. Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations around the world, and provides select work tools, machinery components, wear and maintenance components and related parts. Power & Energy segment supports customers in oil and gas, power generation, marine, rail and industrial applications, including Caterpillar machines. It is engaged in the provision and development of mining software solutions to the mining industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Stock Performance: Caterpillar (CAT) has seen its stock price rise 61% year-to-date and over 165% in the past 12 months, reflecting robust market demand and investor confidence, indicating the company's resilience and growth potential amid economic cycles.
- Significant Order Backlog: The company's order backlog provides rare visibility, indicating long-term demand in sectors like AI, infrastructure, and mining, further solidifying its market position and attracting institutional investor interest.
- Technical Breakout: Technical analysis reveals that Caterpillar's stock has broken through key support levels, forming a classic continuation pattern, with short-term targets potentially reaching $1,020 and long-term targets approaching $1,080, showcasing strong upside potential.
- Long-Term Growth Outlook: Utilizing Fibonacci extensions, analysts predict continued stock price increases, with new support and resistance levels guiding short-term traders in risk management while setting achievable goals for long-term investors.
See More
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- Stock Price Surge: Caterpillar (CAT) shares have risen approximately 5% over the past five trading sessions following the White House's tariff reductions on certain agricultural and industrial equipment, nearing the record high of $931.35 set on May 7, indicating strong market optimism regarding cost reductions.
- Deere's Performance: Deere & Co. (DE) has advanced roughly 8.1% during the same period, although its shares remain about $90 below the all-time high reached in February, reflecting investor optimism about the policy changes that could stimulate demand for heavy machinery and farm equipment.
- Policy Impact: President Trump signed an executive order lowering tariffs on agricultural equipment from 25% to 15% and expanded the category of industrial equipment eligible for the 15% rate, which is expected to alleviate cost pressures for manufacturers reliant on imported components, thereby enhancing industry competitiveness.
- Long-Term Outlook: The tariff adjustments are set to remain in effect until the end of 2027, marking the latest shift in the administration's metal tariff policy, which may provide greater policy certainty for industrial companies in the coming years and stabilize global supply chains.
See More
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- Google Support Testing: Google's stock is testing support levels amid market volatility, with investors closely monitoring its performance to assess the company's stability and future growth potential in a highly competitive tech market.
- Palo Alto Earnings Beat: Palo Alto Networks reported earnings that exceeded market expectations, demonstrating robust growth in the cybersecurity sector, which could further enhance investor confidence in the company.
See More
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- Metals Market Recovery: Metal prices, particularly copper and aluminum, have risen, indicating a rebound in global demand, which could positively impact the profitability of related companies and enhance market focus on resource stocks.
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