10 Cheapest Dividend Aristocrats to Buy Now

6. Caterpillar Inc. (NYSE:CAT)

Forward P/E Ratio: 17.61

Caterpillar Inc. (NYSE:CAT) is an American company that specializes in construction, mining, and other engineering equipment. The company’s leadership in manufacturing heavy machinery and equipment is strengthened by its focus on innovation and operational efficiency. The company actively invests in technology and process enhancements to overcome supply chain challenges and the cyclical nature of the industrial sector. As global infrastructure development and construction projects expand, Caterpillar is well-positioned to capitalize on the rising demand for its products. In the past 12 months, the stock has surged by over 11.5%.

In the fourth quarter of 2024, Caterpillar Inc. (NYSE:CAT) reported revenue of $16.2 billion, which fell by 5% from the same period last year. The decline was mainly attributed to a $859 million drop in sales volume, which was primarily caused by changes in dealer inventories and reduced equipment sales to end users. Dealer inventory fell by $1.3 billion in the fourth quarter of 2024, compared to a $900 million decrease in the same period of 2023. Its profit per share came in at $5.78, compared with $5.28 in the prior-year period.

Caterpillar Inc. (NYSE:CAT) demonstrated a strong cash position in 2024. During the year, the company generated $12.0 billion in operating cash flow and finished the fourth quarter with $6.9 billion in cash. Over the course of the year, it allocated $7.7 billion for repurchasing Caterpillar shares and $2.6 billion for dividend payments. The company offers a quarterly dividend of $1.41 per share and has a dividend yield of 1.6%, as of February 14. It is one of the best dividend aristocrat stocks, as the company has been growing its payouts for 30 consecutive years.