Why Caterpillar Is The Industrial Giant I'm Betting On For The Next Decade

Leo Nelissen
11-24
  • Caterpillar's resilience against cyclical headwinds is impressive, driven by innovation, a strong balance sheet, and a commitment to shareholder value.
  • Despite short-term revenue declines, Caterpillar's focus on AI, connected assets, and digital tools positions it for long-term growth.
  • Strong dividend growth and aggressive buybacks enhance shareholder value, with a 31-year streak of dividend hikes and a healthy payout ratio.
  • Caterpillar's ability to adapt to long-term trends like AI power demand and potential cyclical upswing suggests continued solid returns.

Ekaterina Kiseleva

Introduction

"Cyclical headwinds."

I have used these two words in many articles this year, as big parts of the economy did not enjoy the benefits that came with artificial intelligence and other secular trends.

This includes the

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