Up to date on February twenty fourth, 2026 by Felix Martinez
Annually, we individually overview every of the Dividend Aristocrats, a gaggle of 69 shares within the S&P 500 Index which have raised their dividends for a minimum of 25 consecutive years.
To make it on the checklist of Dividend Aristocrats, an organization should possess a worthwhile enterprise mannequin with a beneficial model, world aggressive benefits, and the power to face up to recessions. That is why Dividend Aristocrats can proceed elevating dividends in troublesome years.
With this in thoughts, we have now created a listing of all 69 Dividend Aristocrats.
You’ll be able to obtain your free copy of the Dividend Aristocrats checklist, together with necessary monetary metrics reminiscent of price-to-earnings ratios and dividend yields, by clicking on the hyperlink under:
Disclaimer: Certain Dividend is just not affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal overview, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s primarily based. Not one of the info on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official info.
Caterpillar Inc. (CAT) joined the Dividend Aristocrats checklist in 2019. Much more spectacular is that Caterpillar operates in a extremely cyclical {industry}, which usually prevents firms from sustaining lengthy histories of annual dividend will increase.
Nonetheless, Caterpillar’s administration workforce has confirmed its dedication to returning money to shareholders even via the inevitable ebbs and flows of the enterprise through the years. Caterpillar additionally has sturdy aggressive benefits that permit it to boost its dividend every year, even via downturns within the world financial system.
Enterprise Overview
Caterpillar was based in 1925 and at present competes within the manufacturing and promoting of development and mining gear. The corporate additionally manufactures ancillary industrial merchandise, together with diesel engines and gasoline generators. Caterpillar inventory has a market capitalization of ~$351 billion, making it one of many largest industrial shares on the earth.
Industrial producers benefited from robust demand in 2022 and 2021, which fueled development and spurred world financial exercise off the low base established in 2020 amid the pandemic.
On January twenty ninth, 2026, Caterpillar delivered robust fourth-quarter 2025 outcomes, with gross sales rising 18% yr over yr to $19.1 billion, pushed primarily by greater gear demand throughout development, mining, and power markets.
Adjusted EPS reached $5.16, barely above the prior yr, whereas working margins declined to 13.9% attributable to greater manufacturing and restructuring prices, together with tariff impacts. Development was led by the Energy & Power phase, the place gross sales elevated 23%, supported by oil & gasoline exercise and data-center energy technology demand.
For full-year 2025, income elevated 4% to a file $67.6 billion, whereas adjusted EPS totaled $19.06, down from $21.90 in 2024, as margins normalized from peak-cycle ranges. Regardless of decrease profitability, Caterpillar generated $11.7 billion in enterprise working money circulate and ended the yr with $10.0 billion in money, returning $7.9 billion to shareholders via dividends and share repurchases. Gear gross sales quantity remained the first development driver, partially offset by weaker value realization.
Wanting forward, Caterpillar enters 2026 with a file backlog and robust end-market demand, notably in infrastructure, power, and electrification-related tasks.
Continued funding in energy technology, mining gear, and providers income positions the corporate for secure long-term development, though margins might stay pressured within the close to time period by enter prices and restructuring actions.
Supply: Investor Presentation
Development Prospects
Caterpillar is carefully tied to world financial development and commodity costs. Its clients extract assets from the earth and construct and assemble all kinds of buildings, so financial development is vital to funding that improvement.
This results in pretty excessive cyclicality in Caterpillar’s outcomes, with the inventory swinging wildly throughout the extremes of the sentiment scale.
The coronavirus pandemic weighed closely on the corporate, however the ensuing world financial restoration enabled Caterpillar to turn out to be extremely worthwhile in 2021 and 2022. Caterpillar is offsetting greater manufacturing prices with greater costs.
We forecast $22.65 in earnings per share for 2026, with a 16% annual development charge over the subsequent 5 years.
Supply: Investor Presentation
Aggressive Benefits & Recession Efficiency
Aggressive benefits in industrial purposes will be difficult, provided that some rivals make related merchandise for many purposes.
Nonetheless, through the years, Caterpillar has turn out to be some of the vital gamers in profitable finish markets, together with development, power, and mining.
Its world presence affords it some diversification of income by phase and {industry}, in addition to geographically, which has served it effectively lately. Its scale additionally permits it to leverage down variable prices per unit, boosting margins.
Nonetheless, Caterpillar is definitely not proof against recessions, as world financial slowdowns are typically accompanied by decrease commodity costs and slower development spending.
These components took a significant toll on Caterpillar’s backside line throughout the Nice Recession, as its earnings have been devastated, if solely briefly.
Caterpillar’s earnings-per-share throughout the Nice Recession are under:
- 2007 earnings-per-share of $5.32
- 2008 earnings-per-share of $5.71 (7% improve)
- 2009 earnings-per-share of $1.43 (75% decline)
- 2010 earnings-per-share of $4.15 (190% improve)
Whereas Caterpillar definitely felt the ache of the Nice Recession, its earnings rebounded pretty shortly, and it reclaimed its pre-recession earnings-per-share stage in 2011.
Caterpillar additionally skilled a big decline in earnings per share in 2020 as a result of coronavirus pandemic, however recovered strongly since then in a brief time period.
Due to this fact, Caterpillar is clearly uncovered to recessions as a result of financial bellwether nature of the heavy equipment {industry}. Nevertheless it additionally has a historical past of recovering from downturns pretty shortly.
Valuation & Anticipated Returns
Caterpillar’s present price-to-earnings ratio is 33.9x, primarily based on the 2026 anticipated EPS of $22.65. That is an elevated valuation stage for Caterpillar. Since 2013, Caterpillar’s shares have traded with a mean P/E ratio of about 17x. We consider 25x is an affordable, truthful worth estimate for Caterpillar, given its cyclical enterprise and vulnerability to recessions and the present rising charge surroundings.
Durations of cyclicality are regular for Caterpillar’s valuation. Nonetheless, the inventory seems overvalued. A declining P/E a number of may cut back future returns; if the P/E a number of declines from 33.9x to 25x over the subsequent 5 years, it might decrease annual returns barely.
One other destructive facet of shares with elevated valuations is that they usually have decrease dividend yields. As Caterpillar’s share value has risen previously yr, its dividend yield has declined to 0.8%. Dividends and earnings-per-share development (anticipated to develop at 16% per yr) will add to shareholder returns, however the inventory’s overvaluation is a hurdle.
Primarily based upon the components mentioned above, we see complete returns of 11.8% per yr. This leads us to charge Caterpillar a maintain at present.
Ultimate Ideas
Caterpillar inventory continues its spectacular rise, up over 190% previously yr, in contrast with the S&P 500 index’s acquire. Ends in 2026 are anticipated to be greater. Whereas the inventory is buying and selling above its common PE and our truthful worth estimate, it’s severely overvalued.
Caterpillar has an industry-leading model and a constructive long-term development outlook, however we really feel the inventory has turn out to be overpriced amid the rally because the pandemic lows. With an anticipated future return within the low-double digits, we charge the inventory a maintain. Buyers could also be higher off ready for a decline within the share value.
Additional studying: See evaluation on our favourite agriculture shares.
Moreover, the next Certain Dividend databases comprise probably the most dependable dividend growers in our funding universe:
When you’re searching for shares with distinctive dividend traits, think about the next Certain Dividend databases:
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