Reliable dividend growth
Since Caterpillar pays out consistent and rising dividends regardless of share price, Caterpillar’s poor stock performance has pushed up the yield on the dividend to around 3%, and the company’s dedication to preserving and growing the dividend is legendary. In 2012, Oberhelman claimed that, even in the face of a severe recession “we will never, ever cut a dividend, and we’ll grow dividends modestly as we have been.” Caterpillar’s resilience has so far allowed the company to make good on this claim. For the past thirty years, Caterpillar has raised its dividend by an average of more than 13% annually. Just this month, even in the face of declining sales in 2013, Caterpillar boosted its dividend by 15%. Investors seeking stable, growing income would be hard-pressed to pass by Caterpillar stock.
The article 3 Reasons to Buy Caterpillar Stock Today originally appeared on Fool.com and is written by Daniel Ferry.
Fool contributor Daniel Ferry owns shares of Caterpillar. The Motley Fool has no position in any of the stocks mentioned.
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