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from24/7 Wall St.
9 hours agoHere's What Makes Caterpillar's Dividend One of the Safest in Industrials
Caterpillar's strong financials and consistent dividend growth position it well despite rising debt and tariff challenges.
Caterpillar Inc ( NYSE: CAT) manufactures heavy equipment that builds the world's infrastructure. The company just paid $1.51 per share in January 2026, bringing its annual dividend to $6.04 (up from $5.84 in 2025). That 3.4% increase extends a 15-year streak of annual raises. With a yield under 1%, you're not buying CAT for income today. You're buying it for what the dividend becomes over the next decade.
"Our customers don't live in front of a laptop day in and day out; they live in the dirt," Hootman said. "The ability to get the insights and take the action that they need while they're doing the work is very important to them."
Six of the seven have experienced mixed or negative returns at points throughout the year, with broad concerns over valuations, sector rotations, and sustainability weighing on performance. In contrast, one unexpected name has outperformed six of the seven: Caterpillar ( ), the heavy equipment manufacturer. On a total return basis (capital appreciation plus dividends), Caterpillar trails only Alphabet by about one percentage point or so as of last Friday's close.
The fund had held a 1.2 percent stake in Caterpillar, valued at 24.4 billion krone ($2.4 billion), as of the end of last year. The Norwegian central bank, which manages the fund, said it had decided to exclude Caterpillar as it posed "an unacceptable risk... to serious violations of the rights of individuals in situations of war and conflict". The fund said it had based its decision on a recommendation by its council on ethics.
We started realizing these things are only hanging out where there are spiders. It's the sort of thing you really want to be sure of because it's not just incredible, it's unimaginable.