Caterpillar's Dividend Hike Is A Positive Signal Amid Macro Worries

  • I reiterate my buy rating on Caterpillar, citing its recent dividend hike and resilient shareholder-friendly actions amid macro uncertainty. Despite weak Q1 results and EPS downgrades, CAT's robust profitability, strong free cash flow, and reasonable valuation support a positive long-term outlook. Key risks include tariff headwinds, global macroeconomic weakness, and China exposure, but CAT's balance sheet and GARP profile remain attractive.