Should I buy Caterpillar stock in 2025?
Is Caterpillar stock a buy right now?
With a share price near $314 and recent average daily trading volumes exceeding 2.1 million shares, Caterpillar Inc. remains one of the most closely watched industrial stocks on the NYSE in May 2025. Despite facing a 10% decline in quarterly revenue due to lower sales volumes and a dip in operating margins, market observers note that these headwinds are largely cyclical and manageable for a company of Caterpillar’s global stature. Importantly, the company has just completed a CEO succession, passing leadership to long-time executive Joe Creed, which is widely viewed as a sign of stability and strategic continuity. The current sentiment in the market, while acknowledging some recent softness, leans constructive, supported by Caterpillar’s strengths: a robust $3.6 billion cash position, 31 straight years of dividend increases, and a diverse business portfolio covering multiple sectors. Notably, growth in large engine sales tied to data center expansion underpins opportunity in the Energy & Transportation segment, while a record $5 billion backlog signals healthy future demand. Within the broader Industrials sector, Caterpillar stands out as a resilient dividend aristocrat. According to the consensus of more than 34 national and international banks, the target price for CAT is set at $409, reflecting enduring confidence in the company’s long-term prospects.
- Maintains 31 consecutive years of dividend increases and consistent shareholder returns.
- Robust $3.6 billion enterprise cash position offers flexibility and stability.
- Diversified operations across construction, resources, and energy provide resilience.
- Record $5 billion organic backlog growth indicates strong forward demand.
- Growth in large engines for data centers opens new revenue opportunities.
- Recent quarterly revenue and margin declines may linger near term.
- Stock trades below key long-term moving averages, signaling cautious technical outlook.
- What is Caterpillar?
- How much is Caterpillar stock?
- Our full analysis on Caterpillar </b>stock
- How to buy Caterpillar stock in United States?
- Our 7 tips for buying Caterpillar stock
- The latest news about Caterpillar
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring Caterpillar’s performance for more than three years. Each month, hundreds of thousands of users across the United States rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not represent investment advice. In accordance with our ethical charter, we have never received, and will never accept, any compensation from Caterpillar.
What is Caterpillar?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based, Caterpillar benefits from a large domestic and international market presence. |
| 💼 Market | New York Stock Exchange (NYSE) | Listing on the NYSE ensures high liquidity and investor visibility. |
| 🏛️ ISIN code | US1491231015 | Unique identifier for Caterpillar stock in global financial markets. |
| 👤 CEO | Joseph E. Creed | Longtime insider, Creed became CEO in May 2025, ensuring strategic continuity. |
| 🏢 Market cap | $150.05 billion | Large-cap status offers financial stability but less rapid growth potential. |
| 📈 Revenue | $14.2 billion (Q1 2025) | Revenue dropped 10% year-over-year, highlighting near-term sales pressure. |
| 💹 EBITDA | ~$2.6 billion (Q1 2025 est.) | Strong cash generation; however, EBITDA has declined from previous quarters. |
| 📊 P/E Ratio (Price/Earnings) | 15.30 | At 15.3, the P/E indicates reasonable valuation versus sector but slower growth outlook. |
How much is Caterpillar stock?
The price of Caterpillar stock is rising this week. As of May 2, 2025, Caterpillar Inc. (CAT) trades at $313.96, reflecting a 24-hour gain of $4.69 (+1.52%) and showing a weekly increase from recent lows.
| Market Capitalization | Average 3-Month Volume | P/E Ratio | Dividend Yield | Beta |
|---|---|---|---|---|
| $150.05 billion | 2.85 million shares | 15.30 | 1.80% | 1.35 |
The beta of 1.35 indicates above-average market volatility. Investors should note this volatility, which may present both risks and opportunities as the market responds to Caterpillar’s recent performance and outlook.
Check out the USA's best brokers!Compare brokersOur full analysis on Caterpillar stock
After a comprehensive review of Caterpillar Inc.’s latest financial disclosures and a close examination of its share price evolution over the past three years, our proprietary analysis—leveraging a combination of financial metrics, advanced technical signals, real-time market data, and peer benchmarking—offers some compelling insights. Caterpillar (NYSE: CAT), a longstanding bellwether in the heavy machinery segment of the Industrials sector, presents a unique intersection of value, resilience, and growth opportunity even amid a challenging cyclical backdrop. So, why might Caterpillar stock once again become a strategic entry point into the infrastructure and industrial machinery space in 2025?
Recent Performance and Market Context
Caterpillar shares currently stand at $313.96, up 1.52% from the previous session, and have seen a 24-hour trading range of $311.02 to $318.89. This price action, while below the year’s highs, underscores renewed investor interest following a period of correction; the stock is down approximately 13.5% year-to-date but remains substantially above its 52-week low of $267.30.
The recent Q1 2025 results provide essential context: although revenue declined year-over-year (10% lower at $14.2 billion), the company maintained robust profitability with an adjusted profit per share of $4.25 and delivered $1.3 billion in operating cash flow. This performance is set against an evolving macro backdrop, where global infrastructure investments, government stimulus in developed economies, and secular growth in energy demand—especially from data centers—continue to offer powerful tailwinds.
Positive catalysts include Caterpillar’s record organic backlog growth ($5 billion in Q1) and the completion of a smooth leadership transition. The ascension of Joseph Creed to CEO ensures strategic continuity, maintaining investor confidence in the company’s execution and vision. The company’s strong dividend track record and history of capital returns further reinforce its appeal in volatile markets.
Technical Analysis
From a technical perspective, Caterpillar’s chart reveals intricate dynamics that may intrigue both short- and long-term investors. Currently, CAT trades above key short-term moving averages (5-, 10-, and 20-day)—a textbook signal of a budding reversal and, often, renewed buying momentum. Notably:
- 5-Day MA ($307.41), 10-Day MA ($302.53), 20-Day MA ($296.69): The current price exceeds all, indicating near-term upside momentum.
- RSI (14) at 51.16: The stock is neither overbought nor oversold, suggesting significant headroom for moves in either direction but with a bias to the upside following the correction.
- MACD remains negative (-4.88), and longer-term moving averages (50-, 100-, 200-day) remain above current prices, reflecting a stock that has reset from overextensions and may now be constructing a new base.
- Key support levels are firmly established around $298–$304, creating a safety buffer for new positions, while resistance at $315.50 offers a near-term breakout point that, if surpassed, could trigger accelerated buying.
Short-term momentum is establishing increasingly higher lows, setting the stage for a possible bullish reversal pattern. For traders, a break above immediate resistance could mark the beginning of a multi-week upward leg, while sustained volume above these levels would further validate the reversal thesis.
Fundamental Analysis
Despite the headline contraction in quarterly revenues, Caterpillar’s fundamental profile remains highly attractive:
- Revenue and Profitability: $14.2 billion in Q1 2025 revenue and $4.20 profit per share demonstrate operational strength even amid market headwinds. Operating margins, while off prior highs (currently at 18.1%), remain among the best in the industrial machinery sector.
- Valuation: With a P/E ratio of 15.3 and a dividend yield of 1.80%, CAT is priced attractively relative to both direct competitors and the broader S&P 500, offering a compelling blend of value and income.
- Strategic Expansion: The robust growth in Caterpillar’s Energy & Transportation segment (notably in large reciprocating engines for data center use) reflects a forward-looking approach, aligning the company with the digital economy’s infrastructure needs.
- Brand and Market Share: Caterpillar’s entrenched global leadership, its 31-year streak of rising dividends (Dividend Aristocrat status), and its multi-industry diversification underpin enduring brand strength and pricing power.
This resilience is amplified by a strong, $3.6 billion cash position and management’s ongoing commitment to both R&D and shareholder returns ($4.3 billion deployed for dividends and repurchases in Q1 2025).
Volume and Liquidity
A recurring hallmark of CAT shares is their high liquidity and robust trading volumes—recently exceeding several million shares daily. Such liquidity is indispensable for both institutional and retail investors, enabling strategic accumulation or tactical trading without outsized price impact.
This active trading environment—including a float of 477.93 million shares—creates the preconditions for dynamic valuation adjustments as sentiment shifts and enhances CAT’s role as a bellwether for capital flows into the industrial/infra sector.
Catalysts and Positive Outlook
Catalysts that may propel the next bullish phase for Caterpillar include:
- Leadership Continuity with Innovation: New CEO Joseph Creed ensures stability alongside a commitment to digitalization, automation, and electrification of heavy machinery, positioning Caterpillar to benefit from industrial mega-trends.
- Data Center and Power Infrastructure Boom: Rapid growth in global data centers is fueling demand for Caterpillar’s large engines and backup generator solutions—a secular growth vector with double-digit annual expansion.
- ESG and Sustainability Initiatives: CAT continues investing in low-emission technologies, autonomous equipment, and advanced analytics, aligning with evolving environmental and regulatory demands, broadening its appeal among sustainability-focused investors.
- Upcoming Tariff Easing: Management’s optimism about the easing of tariff headwinds ($350 million expected in Q2) may improve operating margins in the coming quarters.
- Record Backlog: With $5 billion in Q1 organic backlog growth, visibility into future revenue remains high, offering a forward-looking buffer even during cyclical slowdowns.
The convergence of these factors, in concert with Caterpillar’s proven adaptability through economic cycles, suggests the company is poised for resilient growth as industrial capital expenditure rebounds globally.
Investment Strategies
CAT stock’s current profile makes it appealing for multiple positioning strategies:
- Short-Term: The bounce from established support near $300 presents an appealing tactical entry for traders seeking quick exposure to a potential breakout above near-term resistance ($315.50). Technical momentum is already improving, and market catalysts (such as Q2 results or positive tariff developments) could amplify upward moves.
- Medium-Term: Investors looking to align with the next upswing in industrial demand may find value in accumulating shares ahead of clearer fundamental inflection, supported by Caterpillar’s backlog and margin recovery targets.
- Long-Term: Dividend-focused and growth-oriented investors may view CAT’s robust capital allocation, defensive balance sheet, and diversification as reasons to anchor the stock within a core long-term holding—especially when entering near multi-month support levels or in anticipation of renewed cyclical upturns.
The combination of a modest P/E, consistent dividend increases, and exposure to secular infrastructure and technology trends offers a trifecta that few industrials can match.
Is It the Right Time to Buy Caterpillar?
Synthesizing the technical, fundamental, and strategic dimensions, Caterpillar’s stock appears to offer an excellent opportunity for renewed consideration by investors seeking a blend of stability, income, and growth potential. Short-term technical signals suggest a base is forming, while solid fundamentals and rising backlogs counterbalance recent cyclical headwinds. The disciplined management transition and forward-thinking strategy reinforce the case for optimism as the company pivots toward next-generation infrastructure demand.
With support from robust liquidity, compelling valuation metrics, and clear exposure to the global infrastructure and data economy buildout, Caterpillar may well be entering a new bullish phase. For investors searching for thoughtful exposure to industrial resilience with optionality on future technology-driven growth, Caterpillar’s current positioning seems to justify fresh interest—and may prove strategically rewarding as the sector regains momentum in 2025.
For those willing to capitalize on a global leader in transition, the upside potential—anchored by operational strength and an exemplary shareholder return ethic—makes Caterpillar a stock that deserves close attention at this pivotal juncture.
How to buy Caterpillar stock in United States?
Buying Caterpillar stock online is both simple and secure, thanks to the wide range of regulated brokers operating in the United States. Whether you’re looking for long-term ownership or more flexible, leveraged trading, you have two main options: purchasing shares directly (spot buying) or trading Contracts for Difference (CFDs). Each method has its specific advantages, costs, and risk profiles. To help you choose the right approach, a detailed comparison of leading brokers and their fee structures can be found further down this page.
Spot Buying
When you buy Caterpillar stock “on the spot,” you become the direct owner of the shares in your brokerage account. This method is ideal for investors seeking to benefit from potential price appreciation, dividend income, and voting rights. Typical fees for spot buying in the U.S. are around $0 to $10 per trade, with most major brokers now offering flat commissions—sometimes even free, though some may still charge up to $5 per order.
Example
Suppose Caterpillar (CAT) shares are trading at $314 each. With a $1,000 investment, you can buy approximately 3 shares (because $314 × 3 = $942, leaving $58 aside), factoring in a $5 commission.
✔️ Gain scenario:
If the CAT share price rises by 10%, your holding is now worth about $1,100.
Result: That’s a $100 gross gain, which equals +10%—not counting any dividends you may receive.
Trading via CFD
CFDs (Contracts for Difference) let you speculate on Caterpillar’s share price without owning the stock itself. CFDs appeal to active traders because they offer leverage and allow you to go long or short. The main fees are twofold: the spread (the difference between the buy and sell prices) and daily overnight financing costs if you keep positions open for more than a day.
Example
With $1,000 and 5x leverage, you can open a CFD position on Caterpillar equivalent to $5,000 exposure.
✔️ Gain scenario:
If Caterpillar’s price climbs 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on a $1,000 stake—excluding trading fees and overnight financing.
Final Advice
Before investing, it’s essential to compare broker fees, trading platforms, and the types of accounts available. Spot buying typically suits those who want to invest for the long term and collect dividends, while CFD trading is designed for short-term strategies with higher risk and return potential. Ultimately, the best choice depends on your investment goals and risk profile. For more details and side-by-side broker comparisons, see the table further down this page.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the AMF in France, as well as the FCA (UK), ASIC (Australia) and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognized for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5. In the event that you remain inactive for 12 months or more, a $10 monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step-by-step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problem has been identified.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the AMF in France, as well as the FCA (UK), ASIC (Australia) and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognized for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5. In the event that you remain inactive for 12 months or more, a $10 monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step-by-step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problem has been identified.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is it easy to withdraw money from IG?
Withdrawing funds from IG is quick and straightforward, offering options such as PayPal, bank transfer, or credit card. Processing times are usually 1 to 3 business days. IG ensures a transparent withdrawal process, and many users appreciate the clarity of withdrawal fees, providing a hassle-free experience.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is it easy to withdraw money from IG?
Withdrawing funds from IG is quick and straightforward, offering options such as PayPal, bank transfer, or credit card. Processing times are usually 1 to 3 business days. IG ensures a transparent withdrawal process, and many users appreciate the clarity of withdrawal fees, providing a hassle-free experience.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, starting with the AMF in France, but also the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or electronic wallets. Everything is designed to offer you fast, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, starting with the AMF in France, but also the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or electronic wallets. Everything is designed to offer you fast, clear and secure access.
Our 7 tips for buying Caterpillar stock
| Step | Specific tip for Caterpillar |
|---|---|
| Analyze the market | Review Caterpillar’s recent financials and sector trends, noting its strong balance sheet but current revenue pressures, to assess if current valuations fit your investment outlook. |
| Choose the right trading platform | Select a U.S.-regulated brokerage that provides cost-effective access to NYSE-listed stocks like Caterpillar, ensuring ease of order types and reliable execution. |
| Define your investment budget | Decide how much to invest in Caterpillar by considering its above-market volatility (beta 1.35) and your total portfolio diversification needs. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from Caterpillar's track record of dividend growth and strong backlog, or a short-term approach if seeking to capitalize on price swings. |
| Monitor news and financial results | Keep a close watch on Caterpillar’s quarterly earnings, updates on its leadership transition, tariff impacts, and data center growth, as these factors can rapidly affect stock direction. |
| Use risk management tools | Set stop-loss or trailing stop orders to help manage Caterpillar’s volatility and protect your capital, especially as the stock trades below key moving averages. |
| Sell at the right time | Plan to take profits at technical resistance levels, or review your position if earnings lag or market sentiment turns negative, while considering tax efficiency in timing your sale. |
The latest news about Caterpillar
Caterpillar stock has gained over 1.5% in the past week, outperforming the broader market. The stock closed at $313.96 as of May 2, 2025, up $4.69 from the previous session, within a 24-hour trading range of $311.02 to $318.89. Despite recent declines, this upward movement signals resilience, particularly after the company’s Q1 results. Although year-to-date performance is still negative, this bounce aligns with positive sentiment among investors responding to the company’s solid cash flow, strong dividend record, and share repurchases.
A successful leadership transition has preserved continuity and instilled confidence among U.S. stakeholders. On May 1, 2025, Joseph E. Creed, a 28-year Caterpillar veteran, officially took over as CEO, succeeding D. James Umpleby III, who became Executive Chairman. Creed’s appointment, after holding roles including COO and president of key divisions, is widely viewed as providing strategic consistency while offering experienced leadership. This move reassures both institutional and retail U.S. investors about Caterpillar’s ongoing commitment to its long-term vision and shareholder value.
The company reaffirmed its dividend commitment, with the next $1.41-per-share payment scheduled for May 20, 2025. Caterpillar’s history of annual dividend increases for 31 consecutive years places it firmly among S&P 500 Dividend Aristocrats. The current yield stands at approximately 1.80%, a strong signal of income stability. This reliable dividend payout, especially in a volatile sector, continues to attract U.S.-based income-focused investors who prioritize steady returns over short-term capital gains.
Caterpillar’s Energy & Transportation segment posted a profit margin improvement amidst overall revenue declines, buoyed by U.S. data center demand. Q1 2025 segment profit rose 1% year-over-year to $1.31 billion, and margin grew to 20%, outperforming other divisions. Growth in large reciprocating engines, particularly for North American data center infrastructure, offsets weakness in construction and resource industries. This shift highlights Caterpillar’s ability to pivot toward high-growth verticals that are relevant to U.S. infrastructure modernization and technology trends.
The company reported record organic backlog growth of $5 billion, signaling robust demand across American end markets. Despite a 10% annual revenue decline attributed to lower dealer inventory buildup, Caterpillar’s order backlog reached historic levels in the latest quarter. This backlog, notably fueled by infrastructure, energy, and digital transformation investments in the U.S., suggests resilience and potential for sales momentum to recover over upcoming quarters. The strong backlog demonstrates healthy fundamentals and points to constructive prospects for the company’s future business environment in its most important market.
FAQ
What is the latest dividend for Caterpillar stock?
Caterpillar currently pays a quarterly dividend of $1.41 per share, with the next payment scheduled for May 20, 2025, to shareholders of record as of April 21, 2025. This annualizes to $5.64 per share and reflects a yield of about 1.80% at the current price. Impressively, Caterpillar is a Dividend Aristocrat, having raised its annual dividend for 31 consecutive years, underlining its long-term commitment to shareholders.
What is the forecast for Caterpillar stock in 2025, 2026, and 2027?
Based on the current price of $313.96, the projected values are $408.15 at the end of 2025, $470.94 at the end of 2026, and $627.92 at the end of 2027. These optimistic scenarios reflect Caterpillar’s strong fundamentals, including its leading position in diversified industrial markets and a record company backlog, which points to healthy future demand.
Should I sell my Caterpillar shares?
Holding Caterpillar shares could be a prudent choice for investors seeking stability and long-term growth. The company boasts a resilient business model, consistent dividend increases, and a strong balance sheet. Despite recent short-term pressures, Caterpillar’s strategic focus and well-managed leadership transition support its potential for continued value creation, especially for those with a mid- to long-term horizon.
How are Caterpillar dividends and capital gains taxed for U.S. investors?
For U.S. investors, Caterpillar dividends typically qualify as “qualified dividends,” taxed at long-term capital gains rates depending on your tax bracket. Capital gains from selling shares are also taxable and must be reported on your annual tax return. There is no withholding for U.S. residents, but be sure to track holding periods and IRS reporting requirements for both dividends and gains.
What is the latest dividend for Caterpillar stock?
Caterpillar currently pays a quarterly dividend of $1.41 per share, with the next payment scheduled for May 20, 2025, to shareholders of record as of April 21, 2025. This annualizes to $5.64 per share and reflects a yield of about 1.80% at the current price. Impressively, Caterpillar is a Dividend Aristocrat, having raised its annual dividend for 31 consecutive years, underlining its long-term commitment to shareholders.
What is the forecast for Caterpillar stock in 2025, 2026, and 2027?
Based on the current price of $313.96, the projected values are $408.15 at the end of 2025, $470.94 at the end of 2026, and $627.92 at the end of 2027. These optimistic scenarios reflect Caterpillar’s strong fundamentals, including its leading position in diversified industrial markets and a record company backlog, which points to healthy future demand.
Should I sell my Caterpillar shares?
Holding Caterpillar shares could be a prudent choice for investors seeking stability and long-term growth. The company boasts a resilient business model, consistent dividend increases, and a strong balance sheet. Despite recent short-term pressures, Caterpillar’s strategic focus and well-managed leadership transition support its potential for continued value creation, especially for those with a mid- to long-term horizon.
How are Caterpillar dividends and capital gains taxed for U.S. investors?
For U.S. investors, Caterpillar dividends typically qualify as “qualified dividends,” taxed at long-term capital gains rates depending on your tax bracket. Capital gains from selling shares are also taxable and must be reported on your annual tax return. There is no withholding for U.S. residents, but be sure to track holding periods and IRS reporting requirements for both dividends and gains.
