The Bill and Melinda Gates Foundation is Caterpillar Inc.’s largest Guru stakeholder, with 10,090,400 shares. According to GuruFocus research, Gates has only bought and held CAT since third quarter 2008. The average price is $50.5 per share with a 64% gain. CAT is in the foundation’s top holdings.
Gates' holding history:
With 2012 sales and revenues of $65.875 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also provides financial services, logistics, remanufacturing and progress rail services.
Caterpillar Inc. has a market cap of $54.27 billion, a P/E of 9.6 and a P/S of 0.84. Its stock price is down 11% since January.
Caterpillar is well-known for its cash dividends. Since 1998, the company’s cash dividend has more than tripled. Caterpillar has paid a cash dividend every year since the company was formed in 1925, and has paid a quarterly dividend since 1933. Last week the company announced that it would maintain the quarterly cash dividend of $0.52 per share of common stock.
Caterpillar Chairman and CEO Doug Oberhelman said, “We had a record year in 2012 and I am pleased to announce to our stockholders that we are maintaining Caterpillar’s quarterly dividend. While we're encouraged by some recent improvements in economic indicators, there are still uncertainties in the world and the company is ready for any circumstances. The balance sheet is strong and dividend payments are a good way to reward long-term investors in the company. We are committed to providing value to our stockholders.”
More Than a Tractor…
First organized in 1925 as Caterpillar Tractor Company, Caterpillar Inc. now has a global network of independent dealers and direct sales people. Caterpillar competes in the global marketplace against Komatsu Ltd., Volvo Construction Equipment, Deere & Co., Hitachi Construction Machinery Co., Terex Corporation and others.
As of Feb. 14, 2013, the Bill & Melinda Gates Foundation Trust portfolio listed 26 stocks with a total value of $16.78 billion and a quarter-over-quarter turnover of 3%.
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