CA - Why I Remain Bullish On Caterpillar Dividends

2024-07-21 00:16:10 ET

Summary

• On July 18, Bespoke data revealed a shift in the S&P 500: while the top ten stocks fell 5.6%, the remaining 490 rose 3.7%, highlighting a market-broadening trend.
• Caterpillar stands out, boasting improved profitability, steady service revenue, and strategic tech integrations. Its diverse market exposure bolsters resilience.
• Despite global challenges, CAT's robust free cash flow, consistent dividend growth, and strong dealer network make it a solid investment. I remain bullish on its long-term prospects.

Introduction

On July 18, I saw a very interesting table from Bespoke . According to their data, the ten largest stocks in the S&P 500 lost 5.6% on a one-week basis.

The remaining 490 stocks of the index rose by 3.7%!

Moreover, that week included a day on which the S&P 500 was down more than 1% while more than half of its holdings were up. This hasn't happened since April 2000, more than 24 years ago....

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