Morgan Stanley has shifted its stance on $CAT, upgrading the industrial heavyweight from Underweight to Equal-Weight with a revised price target of $283. The move signals a renewed confidence in Caterpillar’s long-term fundamentals, even as short-term inventory headwinds persist.
📌 Previously cautious due to concerns over excess equipment inventories and potential earnings downside, the firm is now recognizing Caterpillar’s underlying resilience. While construction machinery demand may face temporary dips, Caterpillar’s operational efficiency, strong cash flow, and dominant position in the industrial space make it hard to ignore.
📌 Caterpillar’s dividend track record continues to shine. The company has increased its annual dividend for 31 straight years, a streak that places it firmly in the Dividend Aristocrats camp. The current quarterly payout stands at $1.41 per share, offering an annual yield of around 1.88%. This steady income stream enhances Caterpillar’s appeal, especially for long-term investors seeking both capital growth and passive income.
📌 The upgrade also reflects Caterpillar’s commitment to shareholder returns beyond just dividends. The recent $20 billion boost to its share buyback program highlights management’s confidence in the stock’s value and the company’s strong balance sheet.
📌 All in, the upgrade paints $CAT as more than just a cyclical industrial name—it’s a steady operator with long-term upside and an enviable dividend pedigree.