in cash to stockholders on record as of the close of business on October 25, 2021, who will receive it on November 19, 2021.
How often does Caterpillar pay a dividend?
Throughout the company’s history, Caterpillar has paid a cash dividend each year and has paid a quarterly dividend since 1933. Caterpillar has paid greater yearly dividends for the past 28 years and is a member of the S&P 500 Dividend Aristocrat Index as a result of this dividend payment.
What months does CAT pay dividends?
On October 22, 2021, aterpillar, Inc. (CAT) will begin trading ex-dividend. On November 19, 2021, shareholders will get a cash dividend of $1.11 per share. The cash dividend payment is only available to CAT shareholders who bought their shares before the ex-dividend date. 7.77 percent more dividends were paid out than in the previous year. Dividend yield is 2.17 percent at the current share price of $204,19.
Is Caterpillar a good dividend stock?
High-yielding equities sometimes struggle when interest rates rise, which is something income investors should keep in mind. Because of this, CAT is an excellent investment. The Zacks Rank of the company now stands at 3, making it a solid dividend investment as well (Hold).
When should I expect my dividend?
The payment of a portion of a company’s profits to a certain group of shareholders is known as a dividend. In most cases, dividends are distributed in the form of a check. But they may also receive more stock as compensation. After the ex-dividend date has passed (the point at which the stock begins trading without the previously declared dividend), it is usual procedure to mail stockholders a check for their dividends.
Dividends can also be paid in the form of new shares of the company’s stock. When a company or a mutual fund makes this option available as part of a dividend reinvestment plan (DRIP), it is called dividend reinvestment. The Internal Revenue Service (IRS) always considers dividends to be taxable income (regardless of the form in which they are paid).
Does Caterpillar have preferred stock?
As a particular equity asset, preferred stock can be both equity and debt at once. As of September 2021, Caterpillar preferred stock was worth $0 Mil.
When calculating Enterprise Value, preferred stock’s market value must be added to that of common stock. For the three months that ended in September 2021, Caterpillar’s Enterprise Value was $131,213 million.
Preferred stock par values must be removed from total equity when calculating book value. During the third quarter of 2021, Caterpillar’s Book Value per Share (BVPS) was $30.81.
When calculating earnings per share, dividends paid to preferred stockholders must be deducted from net income (Diluted). (Diluted) earnings per share for the three months ending in September 2021 were $2.60. ).
What is CVS dividend?
CVS distributes a $2.00 dividend per share. 2.22 percent is the annual dividend yield of CVS’s stock. Compared to the US Healthcare Plans sector average of 1.34 percent, CVS HEALTH Corp.’s dividend is higher, but it is also lower, at 4.43 percent.
Does Caterpillar have a lot of debt?
According to the chart below, Caterpillar owed $37.5 billion as of March 2021, the same as the previous year. The chart can be enlarged by clicking on it. Net debt is roughly $27.0 billion, which is offset by cash of $10.5 billion.
How Healthy Is Caterpillar’s Balance Sheet?
Within a year, Caterpillar had obligations totaling US$26.6 billion, and liabilities totaling US$37.5 billion were due after that. This was offset by its $10.5 billion in cash and its $7.80 billion in receivables due in the next 12 months. So its liabilities are US$45.8 billion higher than the sum of its short-term receivables and cash.
To improve its balance sheet, Caterpillar has a market capitalization of US$118.5 billion, therefore it is possible that company might raise funds to do so.
But it’s important to keep an eye on its ability to pay off its debts.
We divide a company’s net debt by its profits before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) by its interest expense to get a sense of the company’s debt-to-earnings ratio (its interest cover).
You can take into account both the total amount of debt (with net debt to EBITDA) and the actual interest costs connected with that debt (with its interest cover ratio).
As a result, Caterpillar has a net debt-to-EBITDA ratio of around 3.5 times.
Nonetheless, its EBIT was 12.2 times its interest costs, showing that the corporation isn’t really paying a large price to sustain that amount of debt. Low prices are encouraging, regardless of whether they last. EBIT was down 24% last year for Caterpillar. This is something investors need to know. The company’s ability to pay off its debt will be like herding cats onto a roller coaster if that pattern continues. When it comes to analyzing debt, the balance sheet is the obvious place to start. However, Caterpillar’s capacity to maintain a strong balance sheet in the future will be largely determined by future earnings. Check out this free analysis providing expert profit estimates to have a better idea of what’s to come.
Free cash flow is needed to pay off debt, and accounting gains are not enough. Check to see how much of the EBIT is supported by free cash flow. With interest and taxes taken out of the equation, Caterpillar’s free cash flow for the most recent three years amounted to 63 percent of its EBIT. Having a surplus of cash allows the organization to pay down debt as necessary.
Our View
Neither Caterpillar’s EBIT growth nor its net debt-to-EBITDA ratio gave us confidence in its capacity to take on more debt, which was disappointing. There is a whole different story to be told in the book’s interest cover. According to the above facts, Caterpillar’s debt is a little dangerous, in our opinion. Leverage isn’t inherently a bad thing, but it’s something to keep in mind while making investments. The balance sheet is an obvious place to begin when assessing debt levels. In the end, though, every organization has the ability to manage risks that are not shown in the financial statements. For Caterpillar, for example, we’ve found two warning indicators that you should be aware of before buying.
End of the day, organizations with no net debt are often the best investments. You may find a list of these businesses on ours (all with a track record of profit growth). It doesn’t cost anything.
To trade Caterpillar, use Interactive Brokers, which has been rated #1 Overall by Barron’s. There are more than a dozen financial instruments to trade on 135 marketplaces from a single integrated platform.
Why are Caterpillar shares so high?
It wasn’t just Caterpillar that was put to the test by the COVID-19 pandemic in 2020. This corporation, and its shares, are projected to benefit from the post-pandemic excitement for new construction.
Is now a good time to buy Caterpillar stock?
Investors are in for a treat! Right now, Caterpillar is a great value. The intrinsic value of the stock is $305.40, which is higher than the current market value of the company. This could be an indication of a good time to buy low. Furthermore, Caterpillar’s low beta indicates that the company’s share price is more stable than most of the rest of the market. To put it another way, a low beta indicates that if you feel the current share price will eventually move toward its intrinsic value, you may not be able to get back into an attractive buying range once the stock reaches that level.
What does the future of Caterpillar look like?
There are many factors to consider when you’re looking at investing in stocks, and one of them is the potential for growth. A more compelling investment thesis would be a company with significant growth potential at a low price, despite the fact that value investors contend that the intrinsic value relative to the price is the most important consideration. Caterpillar’s earnings are predicted to rise by 55% in the next four years, showing a very positive outlook. As a result, the value of the company’s stock should rise.
What this means for you:
Do you own stock in the company? CAT’s current undervaluation may make it a good time to increase your stake in the company. It appears that this growth has not yet been fully included into the share price, despite the bright forecast. Capital structure is one factor to take into account when trying to figure out why the stock is now being undervalued.
Are you interested in becoming an investor? Now is a good moment to buy CAT if you’ve been keeping an eye on it for a long. You still have time to invest in CAT because the current share price doesn’t yet reflect its optimistic future prospects. Consider the company’s management history before making any investment decisions so that you can make an educated investment selection.
We have a list of over 50 additional stocks with great growth potential if Caterpillar is no longer something you’re interested in.
The lowest-cost* platform used by professionals to trade Caterpillar stock is Interactive Brokers. Using a single integrated account, its customers from more than 200 nations and territories trade stocks, options, futures markets, FX markets, bonds and mutual funds all over the world
How long do I have to hold a stock to get dividends?
For dividends to be taxed at the preferred 15% rate, you must hold the shares for a certain amount of time. Within the 121-day window surrounding the ex-dividend date, that minimal term is 61 days. Beginning 60 days prior to the ex-dividend date, the 121-day period begins.
