Caterpillar raises dividend by 8%
Caterpillar Inc. said Wednesday its board voted to increase the company’s dividend by 8 cents, an 8% raise, to $1.11. The dividend is payable Aug. 20 to shareholders of record on July 20. “Through the execution of our enterprise strategy for profitable growth, Caterpillar is generating higher free cash flow through the cycles,” Chief Executive Jim Umpleby said in a statement. “Our strong balance sheet and liquidity position make it possible for us to continue our long history of increasing our dividend and returning value to shareholders.” The heavy machinery company is a S&P 500 index’s “dividend aristocrat,” or a company that has increased its dividend consistently for a quarter century. Shares of Caterpillar have gained 30% this year, compared with 13% gains for the S&P. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Norway's $1.35 trillion sovereign wealth fund, the world's largest, said it would support a shareholder climate policy initiative at the Caterpillar (CAT.N) annual general meeting on June 9.
benefit from these conditions. Two names that spring to mind are
Caterpillar (NYSE:CAT) and copper miner
Freeport-McMoRan (NYSE:FCX). Sometimes the charts don t lie, and Caterpillar and Freeport are up 5% and 24%, respectively, in the last month while the
S&P 500 is down almost 1%. Here s why both could continue to be big winners in 2021.
Caterpillar and Freeport-McMoRan
It might seem strange to designate highly cyclical stocks like Caterpillar and Freeport as winners from a market sell-off. Still, all cycles are different, and investors need to adjust their playbooks when facing other opposition.
The case for Caterpillar rests on the idea that the global economy will continue its cyclical recovery but will have to adjust to higher raw material prices. The company is well known for its construction and infrastructure equipment. However, Caterpillar is also a significant player in the energy (oil) and resources (mining and aggregates) equipment sector. A robust long-term re