Caterpillar Is Good, But Not Quite Great
Portfolio Pulse from
Caterpillar, a global machinery manufacturer with a market cap near $200B, has a strong dividend history but is currently trading at a premium. Despite a recent dividend hike, its valuation suggests a potential pullback is needed before it becomes an attractive investment.
December 02, 2024 | 12:00 pm
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Caterpillar is a Dividend Champion with a recent 8.5% dividend hike, but is trading at a 15% premium to fair value. A pullback may be needed before it becomes an attractive investment.
Caterpillar's strong dividend history and recent hike are positive, but the stock is currently overvalued by about 15%. This suggests a potential short-term price decline as the market corrects the overvaluation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100