Why Caterpillar Stock Zoomed Nearly 10% Higher on Wednesday
In times of volatility, investors often find comfort in a company maintaining a steady-as-we-go policy.That, combined with vastly improving sentiment on manufacturing companies, pushed industrial vehicle specialist Caterpillar's (NYSE: CAT) stock to a gain of just under 10% on Hump Day. That bounce was higher than even the ultra-frothy S&P 500 index's 9.5%.Caterpillar's consistency came from its dividend policy. That morning, it declared that its next quarterly payout would be $1.41 per share, an amount matching the previous three distributions. Such a move is a positive signal to investors that the company will do well enough to at least keep the dividend level.Continue reading
In times of volatility, investors often find comfort in a company maintaining a steady-as-we-go policy.
That, combined with vastly improving sentiment on manufacturing companies, pushed industrial vehicle specialist Caterpillar's (NYSE: CAT) stock to a gain of just under 10% on Hump Day. That bounce was higher than even the ultra-frothy S&P 500 index's 9.5%.
Caterpillar's consistency came from its dividend policy. That morning, it declared that its next quarterly payout would be $1.41 per share, an amount matching the previous three distributions. Such a move is a positive signal to investors that the company will do well enough to at least keep the dividend level.
