15 Best Dividend Paying Stocks to Buy Right Now

7. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 87

Caterpillar Inc. (NYSE:CAT) has been grabbing analysts’ attention. On May 5, Argus raised its price recommendation on CAT to $990 from $820. It reiterated a Buy rating on the shares. The firm said Caterpillar has been benefiting from rapid growth in the data center market, which is driving demand for its power generation products, including reciprocating engines, gas turbines, and solar microgrid systems. The analyst also pointed to strong performance in the company’s oil and gas business, as well as growing demand for construction equipment used in data center projects. Argus expects those trends to continue, with demand across these areas remaining strong through 2026 and in the years ahead.

On May 4, DA Davidson also lifted its price goal on Caterpillar, raising it to $845 from $650. It maintained a Neutral rating after the company’s stronger-than-expected first-quarter results. According to the firm, Caterpillar delivered results that comfortably exceeded expectations across most key metrics. Management also raised its outlook, reflecting growing confidence in the business. The analyst noted that data center-related demand is becoming an increasingly important driver for Caterpillar, with the company now aiming to triple its large-engine capacity by 2028, up from its previous target of doubling capacity.

Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.