Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

3 Reasons to Buy Caterpillar Inc. (CAT) Stock Today

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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.