10 Best Stocks to Buy According to Bill Gates

5. Caterpillar Inc. (NYSE:CAT)

Stake Value as of Q4 2024: $2,667,597,015

Renowned for its iconic yellow heavy-duty machinery, Caterpillar Inc. (NYSE:CAT) is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company boasts a global workforce of 113,200 and has suppliers in 175 countries around the world.

Caterpillar Inc. (NYSE:CAT) faced challenges in Q4 2025 as its revenue of $16.2 billion (down 5% YoY) fell short of the forecasted $16.61 billion, primarily due to reduced market demand. However, the adjusted EPS of $5.14 still managed to beat expectations, showcasing the company’s operational resilience through efficient cost strategies.

Caterpillar Inc. (NYSE:CAT) maintains a robust balance sheet, having generated approximately $40 billion of ME&T free cash flow since 2019, including $10.3 billion only in 2024. Such a strong and consistent ME&T free cash flow has allowed the company to reduce the average number of shares outstanding by approximately 18% since the beginning of 2019. CAT maintains a strong track record of returning value to its shareholders, having paid higher annual dividends for 31 consecutive years and attaining the prestigious title of a dividend aristocrat. The company lived up to its name and distributed $10.3 billion to its shareholders in 2024, with $7.7 billion of share repurchases and $2.6 billion in the form of dividends.