Caterpillar: The More It Drops, The More I Buy

Apr. 09, 2023 5:29 AM ETCaterpillar Inc. (CAT) Stock35 Comments

Summary

  • Caterpillar's stock price has started to weaken as investors are starting to price in a manufacturing recession.
  • While this isn't fun for the value of my dividend investment, I look forward to buying more shares on weakness.
  • The company continues to benefit from subdued CapEx (versus sales), high free cash flow, and a healthy balance sheet.
  • Dividend growth investors might benefit tremendously from buying CAT on weakness.

Fragment of the crawler mechanism.

HORNILO

Introduction

Caterpillar (NYSE:CAT) is one of the first stocks I bought for my dividend (growth) portfolio.

The corporation possesses several distinguishing features, such as a robust machinery business with a wide competitive moat, impressive pricing power, substantial free cash flow that is

This article was written by

Leo Nelissen profile picture
37.8K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CAT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Not financial advice.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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