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?