Renewable energy and health care aside, though, perhaps the least contentious portion of the proposed money Democrats are seeking to spend is the piece meant for infrastructure. Moving money into enhancing infrastructure is something both Democrats and Republicans can agree on — and that’s why Caterpillar is included in this list of stocks to buy.
If increased infrastructure spending goes through, Caterpillar should experience a boom in sales as more projects require more heavy equipment. Pretty straight forward, right? Essentially, it is. That’s part of the reason CAT stock is projected to rise to an average target price of $236, or even as high as $303 per share.
Factor in the dividend — which yields an additional 2.10% — and things look even brighter. Caterpillar is a Dividend Aristocrat, which implies stability across a variety of economic situations. The stock is expected to provide capital returns and a dividend even in headwinds. So, with tailwinds and inherent strengths today, who knows just how well CAT will do.
To top it off, this company has shown some strong financial results recently. In Q2, Caterpillar recorded $12.9 billion in revenue, an increase of 29%. Some $800 million of that revenue was returned to shareholders via dividends and buybacks. ( Nasdaq.com )
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