12 Best Industrial Dividend Stocks to Invest in Now

5. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 62

Caterpillar Inc. (NYSE:CAT) ranks fifth on our list of the best industrial stocks that pay dividends. The American manufacturing company specializes in construction, mining, and other engineering equipment. In the fourth quarter of 2024, the company reported $16.2 billion in revenue, marking a 5% decline from the previous year. The drop was largely attributed to an $859 million decrease in sales volume, driven by shifts in dealer inventories and weaker equipment sales to end users. Dealer inventory levels fell by $1.3 billion during the quarter, a steeper reduction compared to the $900 million decline recorded in the same period of 2023. Despite the revenue decline, profit per share rose to $5.78, up from $5.28 a year earlier.

Caterpillar Inc. (NYSE:CAT) remained financially strong throughout 2024, generating $12.0 billion in operating cash flow and ending the fourth quarter with $6.9 billion in cash. Over the year, the company returned capital to shareholders through $7.7 billion in share repurchases and $2.6 billion in dividend payments. Its robust cash flow has supported 30 consecutive years of dividend increases. Currently, it pays a quarterly dividend of $1.41 per share for a dividend yield of 1.65%, as of March 17.

The number of hedge funds tracked by Insider Monkey owning stakes in Caterpillar Inc. (NYSE:CAT) grew to 62 in Q4 2024, from 50 in the previous quarter. The consolidated value of these stakes is more than $6.8 billion. With over 9 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.