Caterpillar Inc. (CAT) Shares Soar 1.51% on Dividend Hike

Caterpillar Inc. (CAT) shares surged 1.51% today, reaching their highest level since February 2025 with an intraday gain of 2.12%.

The strategy of buying CAT shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -2.74%, significantly underperforming the market. This indicates that waiting for recent highs to enter a position often leads to underwhelming results, especially with short-term holding periods. A more robust approach might involve longer-term views or different entry strategies.

Caterpillar Inc. recently announced a 7% increase in its quarterly dividend, raising it to $1.51 per share. This move underscores the company's dedication to delivering robust returns to shareholders, which could bolster investor confidence in the stock. The Energy & Transportation segment is projected to outperform the company's core products, driven by substantial contributions from engines and turbines used in data centers and power grids. These developments could attract more investors and enhance the market's perception of Caterpillar's financial health and future growth prospects.