My Financial Independence Journey » Investment portfolio » Recent Buy – Caterpillar (CAT)

Recent Buy – Caterpillar (CAT)

July 12th, 2013 | 10 Comments

As part of my commitment to keep my readers up to date on my portfolio, I write up short posts describing my transactions.  Recently, I purchased 23 shares of Caterpillar (CAT).

These 23 shares have a total cost basis of $1,895.53, which works out to about $82.41 per share.  I feel that this is a fair value, especially given currently overvalued nature of the market.  CAT’s current forward dividend is $2.40 per share.  So this amounts to a 2.91% starting yield.  This purchase will increase my dividend stream by $55.20 per year.  The starting yield is a little bit lower than I would like, but I think that CAT is a good company and this price made it a good buy.  Check out my recent analysis of CAT for more detail.

Disclosure:  I am long CAT.

Readers:  What do you think of this purchase?

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Written by MFIJ

Filed under: Investment portfolio · Tags: cat, caterpillar, recent buy

10 Responses to "Recent Buy – Caterpillar (CAT)"

1. JC @ Passive-Income-Pursuit says:

   July 12, 2013 at 9:28 am

   I like CAT as well and have a decent size stake in them. The latest dividend increase was great and gave me more confidence in the economic outlook for the next year. I don’t think they would have been as aggressive with the raise if they were really concerned about their prospects.

   Reply
   1. MFIJ says:

      July 15, 2013 at 5:18 am

      I agree. I’ve got a lot of confidence in CAT I’m pretty happy that the market gave me a second chance to pick it up. The first, which I missed, being when I sold my put agains it.

      Reply
2. Jake @ Common Cents Wealth says:

   July 12, 2013 at 11:02 am

   Looks like a good buy. Hopefully it works out well for you!

   Reply
   1. MFIJ says:

      July 15, 2013 at 5:19 am

      Thanks. I think that CAT will work out pretty well. It’s a solid company and has a great history of dividend growth.

      Reply
3. All About Interest says:

   July 12, 2013 at 11:31 am

   Nice buy, glad to have you as a fellow shareholder now. I have a decent position but would buy more around $80 for sure.

   Reply
   1. MFIJ says:

      July 15, 2013 at 5:21 am

      Thanks. CAT has been doing great since I bought it. If it drops back down towards the $80 mark, I might see if I can increase my holdings if I have capital.

      Reply
4. Robin Nieland says:

   July 12, 2013 at 1:04 pm

   Nice buy! I looked at CAT a few days ago as a potential buy and it looked fairly valued. Good luck with your purchase!

   Reply
   1. MFIJ says:

      July 15, 2013 at 5:21 am

      Thanks.

      Reply
5. Captain Dividend says:

   July 13, 2013 at 8:44 am

   That was a pretty hefty dividend boost they just announced. Good job.

   Reply
   1. MFIJ says:

      July 15, 2013 at 5:29 am

      I think CAT is a pretty strong company, I can’t see CAT increasing its dividend by that much if it wasn’t confident about the future.

      Reply