10 Cheapest High Quality Stocks to Buy According to Hedge Funds

7. Caterpillar Inc. (NYSE:CAT)

Forward P/E Ratio: 19.03

Number of Hedge Fund Holders: 62

Caterpillar Inc. (NYSE:CAT) is one of the 10 Cheapest High-Quality Stocks to Buy According to Hedge Funds. On June 11, Caterpillar Inc. (NYSE:CAT) announced raising its quarterly dividend by 10 cents to $1.51 per share. The increased dividend will be payable by August 20, 2025.

The 10 cent increase reflects a 7% increase in quarterly dividends. Caterpillar Inc. (NYSE:CAT) has a dividend yield of 1.55% and has grown the payout at a rate of 6.48% during the past 5 years. The company aims to return all Machinery, Energy & Transportation free cash flow to its shareholders over time through dividends and buybacks.

Continued delivery on our enterprise strategy for long-term profitable growth, combined with strong operating performance, has led to robust ME&T free cash flow, said Joe Creed, CEO of Caterpillar Inc. (NYSE:CAT).

Caterpillar Inc. (NYSE:CAT) is an international leader in construction and mining equipment. The company operates through three main segments including Construction Industries, Resource Industries, and Financial Products.