On Wednesday, June 8, Caterpillar voted to raise their dividend $.02 cents to $.46 cents per share. Despite the raise and affirmation of their positive 2011 outlook, CAT has been trading down as the effects of worsening economic outlook weigh in. From their open Monday at $100.49/share, they are now trading down about 2.5% on the week, around $98/share. Since May 1, CAT has dropped more than 15% in value.
For our portfolio, I believe it is best to hold onto CAT despite the significant hits their share price has taken. I believe the company still has strong fundamentals and is making moves that will not only carry them through any economic downturn, but allow them to come up stronger and more competitive on the other end.