Caterpillar Inc. (NYSE:CAT) Dividend Ranked Top Socially Responsible Stock With 3.5% Yield

Caterpillar Inc. (NYSE:CAT) investors have a reason to smile as the company’s dividend yields have been ranked the top socially responsible dividend stock.

The company dividend yield was given an above average ranking by the Dividend Channel with the yield statistics reaching 3.5%. Prominent asset managers also described the stock as a socially responsible investment. The analysis was carried out over environmental and social standards.

The environmental criteria included concerns such as efficiency in terms of resources and energy consumption and the environmental impact of the firm’s products and service. The social aspect analyzed the company’s involvement in matters such as child labor, impact on society, corporate diversity and human rights. The social impact was particularly thorough in terms of involvement in activities related to social evils such as gambling, weapons, alcohol, and tobacco.

Based on reports from ETF Channel and ETF Finder, Caterpillar Inc. holds shares in ishares MSCI USA ESG Select Social Index Fund ETF (KLD). This makes up 0.91% of the company’s shareholding in the fund. It is also a member of the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where the firm receives 0.65% of the underlying assets of the fund.

Caterpillar paid dividends priced at $3.08 per share in the last offer. Dividends are paid on a quarterly basis. The next dividend issue will be given on July 7 in the current year.

Caterpillar Inc. (NYSE:CAT) has its main operations in the construction industry. The company manufactures most of its machines for the industry particularly the road construction industry. It operates close to other firms such as United Rentals, Inc. and Wabtec Corp. (WAB). The firm’s ranking is a good a positive step for the company. It will most likely receive more attention from investors, because it is ideal as an investment option.

Caterpillar has a strong future ahead and profits will most likely continue to grow. The current trend is a good indicator of what the firm should expect in the near future.

About the Author

Adam is a staff reporter for US Markets Daily Publications & Media, covering foreign affairs and domestic policy.

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