GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Caterpillar Inc (NEOE:CATR) » Definitions » 5-Year Yield-on-Cost %

Caterpillar (NEOE:CATR) 5-Year Yield-on-Cost % : 2.14 (As of Dec. 15, 2024)


View and export this data going back to 2023. Start your Free Trial

What is Caterpillar 5-Year Yield-on-Cost %?

Caterpillar's yield on cost for the quarter that ended in Sep. 2024 was 2.14.


The historical rank and industry rank for Caterpillar's 5-Year Yield-on-Cost % or its related term are showing as below:

NEOE:CATR' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.94   Med: 3.54   Max: 7.28
Current: 2.14


During the past 13 years, Caterpillar's highest Yield on Cost was 7.28. The lowest was 1.94. And the median was 3.54.


NEOE:CATR's 5-Year Yield-on-Cost % is ranked worse than
64.18% of 134 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.02 vs NEOE:CATR: 2.14

Competitive Comparison of Caterpillar's 5-Year Yield-on-Cost %

For the Farm & Heavy Construction Machinery subindustry, Caterpillar's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Caterpillar's 5-Year Yield-on-Cost % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Caterpillar's 5-Year Yield-on-Cost % falls into.



Caterpillar 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Caterpillar is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

Caterpillar  (NEOE:CATR) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Caterpillar 5-Year Yield-on-Cost % Related Terms

Thank you for viewing the detailed overview of Caterpillar's 5-Year Yield-on-Cost % provided by GuruFocus.com. Please click on the following links to see related term pages.


Caterpillar Business Description

Address
5205 N. O'Connor Boulevard, Suite 100, Irving, TX, USA, 75039
Caterpillar is the top manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Cat Financial. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Cat Financial provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.

Caterpillar Headlines

No Headlines