Caterpillar (NYSE: CAT) has increased its dividend 19 years in a row, which is a long dividend streak considering it is in the industrial equipment industry. Caterpillar has good, but not great past dividend growth rates.
In this article I’ll complete a dividend stock analysis and you will find out why I think their dividend growth will turn from good to great.
10 Year Stock Chart
The 10-year return more »
Amidst a difficult macroeconomic climate, is Caterpillar (NYSE: CAT) still the right construction stock? How is Cummins (NYSE: CMI) able to withstand a decline in mining output? Should you invest money in farmland equipment instead, to reap the rewards of a bonus crop? In this article you will find the answers for these questions.
Caterpillar relies heavily on the growth prospects of China. For the last four months more »
Caterpillar (NYSE: CAT) has been a winning investment for the better part of several decades, but Caterpillar has also had some difficult stretches. Since Caterpillar manufactures and sells construction and mining equipment, it’s highly sensitive to global economic conditions. The stock tends to perform well when global demand is strong, and it tends to perform poorly when global demand is weak. This makes Caterpillar an excellent indicator of economic more »
Apparently, we are seeing several companies try to instil confidence with massive dividend hikes – but should we really be confident? In the case of some, I say “yes,” thus let’s take a look to determine which of these dividend hikes are presenting an investment opportunity.
Quarterly Dividend Hike
2.88 more »
Like many individual investors out there, my first lesson into stock investing focused on the key metrics. Within a few hours I felt like a Wall Street insider - throwing around previously unfamiliar terms like P/E and Current Ratio. The secret to investing was seemingly simple.
Step 1: Identify those companies with superior metrics relative to their industry peers.
Step 2: Profit!
However, over time I've learned how things more »
The global economy continues its gradual, albeit painfully slow, recovery from the financial crisis. In particular, the housing market in the United States looks to be in the beginning stages of a clear recovery after its huge collapse during the depths of the Great Recession. Moreover, global economic development continues to show resilience, particularly in the emerging markets.
Given these industry tailwinds, and adding in the fact that the market more »
The worldwide economic recovery appears to be encouraging; particularly, a couple of select sectors are demonstrating optimistic signs in fiscal year 2013. The industrial goods sector is one that is likely to entice investors as the worldwide economic recovery picks up. A stronger economy should help the industry to increase profits through improvements in sales volumes rather than expense cutting.
Lending money can be highly profitable, especially in today's environment of low rates of interest for the leader to borrow from. However, lending customers money to buy your own company's equipment can be even more lucrative; a win-win situation for the lender. It is no surprise then that many companies now have a finance division to both help boost sales and increase income through the lucrative money lending more »
Editor's Note: The original article misspelled Cummins, this article has been corrected.
Generac Holdings (NYSE: GNRC) is doing two financial transactions of interest currently. First, a private equity fund is selling its shares in a secondary offering. The company is also restricting its debt and paying a $5 per share special dividend in the second quarter - a move seen previously in other industries. Generac’s stock has performed well more »
As the sustainability of the U.S. economic recovery became more apparent to investors, stocks pushed the major benchmarks higher. But not everything came up roses, as it became apparent that the Federal Reserve (Fed) might begin to tweak monetary policy going forward.
The defensive sectors were hit hardest as investors pondered the recent words of Fed Chairman Bernanke. The nervousness that surfaced in May saw three of the S more »
Countless books have been written about what it takes to do well in the stock market. Each investor has his or her own investment style, and aspects like personality, targets, and risk tolerance are important particularities to consider when it comes to developing a successful investment strategy. However, at the end of the day, the most important drivers of long-term investment returns can be summed up in three simple ideas more »
In early May, The Chicago Tribune reported that heavy equipment giant Caterpillar (NYSE: CAT) would lay off up to 800 workers, or 20% of its total team. The gloomy outlook was not improved in mid May by news from the Journal Sentinel reporting that contract negotiations with the United Steelworkers Union had hit a rough patch. A proposed contract was rejected by the Steelworkers on the grounds of a proposal more »
After the end of earnings season for the first quarter, the market has been looking for investing themes in the machinery sector. In this context, the Street is bullish on companies with high exposure in end markets involving energy, construction and/or trucks. Let’s have a look at some of them and judge whether these companies deserve a buy rating.
A mixed outlook on this company
Order activity in more »
Caterpillar (CAT) has had something of a wild ride in 2013. As the chart below shows, the heavy-equipment maker began 2013 on a high note, outperforming both the Dow Jones Industrial Average and the S&P 500 and peaking in mid-February before dropping steadily as the year has worn on.
As a consequence of this, Caterpillar is one of the most volatile stocks of the Dow Jones Industrial Average, with more »
Investing in companies that pay reliable dividends can add a level of stability and predictability to a portfolio. It's a known fact that dividend-paying companies tend to hold up better than non-dividend payers during bear markets. In addition, investing in companies with a combination of exceptional earnings and dividend growth can provide very attractive, market-beating returns over the long term.
In order for a company to pay more »
One of the major headwinds facing the Industrial Resource sector is a lackluster global Purchasing Managers Index (PMI). PMI is an index that is a function of new orders, inventory levels, production, supplier deliveries and the employment environment. In short, it is an indicator of the economic health of the manufacturing sector.
PMI remained under pressure through much of 2012 as global industrial activity weakened outside the U.S. The more »
When people think of revolutions in transportation, they probably don’t think of the railroads. But, that might be changing sooner rather than later.
Last week Amtrak revealed a plan to replace 70 of its older locomotives with newer, more efficient models. Utilizing a braking system that converts 100% of the energy it uses back to the electric grid, the new engines, built by Siemens AG (NYSE: SImore »)
When it comes to deciding if construction and mining equipment companies are good plays, the key is to keep an eye on economic conditions in China. Like it or not, China is going to become the hotspot of economic activity in the future as it continues on its path of rapid development. The industry leaders are Caterpillar (NYSE: CAT) and Joy Global (NYSE: JOY). Based on economic data coming out more »
After releasing an outlook in early 2013 that said that the first quarter of 2013 was expected to be challenging, Caterpillar (NYSE: CAT) went into its first quarter earnings release on April 22, 2013 with a share price of $83.91. That was close to the 52 week low of $78.25.
The disappointment of the first quarter performance was in part due to lowered sales. Caterpillar CEO Doug Oberhelman more »
Record quarterly numbers that easily trampled Street estimates should have ideally charged up the bulls. Instead, Deere’s (NYSE: DE) stock has lost about 7% since it announced results last week. The markets behaved as unpredictably in February when Deere’s stock was punished for another record quarter.
What is wrong with the market? Wasn't the cautious outlook expected? It doesn't even sound as murky as the market more »
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