Caterpillar announces the quarterly dividend
On October 10, Caterpillar (CAT) declared its latest quarterly dividend. The company said that its board had approved a dividend of $0.86 per common share—no change from its previous quarter but a rise of 10.25% from the corresponding quarter of the previous year. Caterpillar has been paying dividends since 1933.
Caterpillar has also announced the key dates for its third-quarter dividend payment. To be eligible for the dividend, investors should hold CAT stock by the close of business on October 22. CAT is expected to pay its dividend on November 20.
At the end of the second quarter, CAT had 604.2 million outstanding shares. Analysts expect its outstanding shares to be at 600 million by the end of the third quarter. Going by this number, CAT is expected to pay ~$516 million toward its third-quarter dividend.
Caterpillar’s stock price update
Caterpillar stock fell on the back of the US market crash last week. Caterpillar fell ~7.3% and closed at $142.07. The fall pushed the stock to trade 1.6% below its 100-day moving average price of $144.40. Caterpillar’s 100-day moving average fell from $154.87 to its current level.
On a year-to-date basis, Caterpillar has extended its fall to 9.8%. In comparison, Deere & Company (DE), 3M Company (MMM), and Stanley Black & Decker (SWK) have fallen 5.2%, 15.8%, and 23.5%, respectively. Analysts have recommended a target price of $167.9 for Caterpillar, which implies a return potential of 18.2% over its closing price on October 12. Caterpillar has a 14-day relative strength index of 38, which indicates that it isn’t overbought or oversold.
Investors can invest in Caterpillar indirectly through the Industrial Select Sector SPDR ETF (XLI), which holds 3.75% in Caterpillar as of October 12.