Dividend Yield: 2.4%
This construction and mining equipment maker is slightly in the red for the year — putting it in the bottom half of InvestorPlace’s 10 Best Stocks for 2012 standings.
Investors have been hard on the company, which manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
You wouldn’t know it by its 3% losses since January, but CAT is set to have its best year ever.
Earlier this summer, the Big Cat reported earnings that surged an eye-popping 67% year-over-year, beating Wall Street estimates by a country mile, while revenues grew more than 20%. Of course, top- and bottom-line improvements have been the status quo for Caterpillar, which has seen nine consecutive quarters of earnings growth and 11 straight quarters of earnings growth.
If shares start to reflect that kind of success, the stock is definitely worth plowing into on capital gains alone. Plus, Caterpillar’s estimated five-year growth is even nicer at 17% per year.
Most importantly for long-term investors, Caterpillar (NYSE:CAT) offers a respectable 52-cent quarterly payout yielding 2.4%. Plus, the company has the longest dividend history on this list — CAT has been rewarding investors for almost 80 years and has increased its quarterly checks by almost 45% in the past five years alone.