Bank stocks have taken a hit lately and have started to trend down, this could be possibly a signal of a recession or a bear market, today we are going to talk about Ally Bank and we are going to see if this stock is worth buying, we’ll see if they pay dividend and we’ll see if their cash flow will be enough to pay share holders.
Hello, welcome to Investing4Profits.com – Today I’d like to share with you what my Robinhood portfolio looks like! I have been investing for a long time and in the past couple of years I have been buying and selling stocks using the Robinhood App.
If you are not familiar with the Robinhood App it, is a platform that allows you to buy and sell stocks using any computer or your smartphone, it works on iPhone and Android devices as well. The biggest benefit of using this application is that you pay zero money in commissions, unlike most stock brokers that charge you $5, $10 dollars or more, Robinhood charges you zero.
Caterpillar is one of the biggest companies in the United States to sell heavy equipment and machinery, they are a Fortune 100 company and they make 45 to 50 billion dollars a year, today we are going to talk about this company and we will decide if $CAT is a buy in 2019.
Disclaimer: I am not a stock market professional or a financial adviser, please invest based on your own research and at your own risk.
So here is a little bit of history regarding Caterpillar Inc, they are a based out of Illinois and they were founded in 1925 in California, they operate worldwide and they manufacture, sell and distribute engines and heavy equipment powering many industries and companies out there, Caterpillar current Market Cap of $79 Billion dollars and they have a good Price to Earnings of 13.55 as of today.
So, why am I interested in this Company? Well there are several reasons, many analyst have their own opinions and they make their own recommendations based on many factors but one of the reasons why I like this company is because they are currently trading at about $138 dollars and their stock pays a Dividend of around 2.5% which comes at .86 cents per quarter or $3.45 every year. One of the biggest reasons why I like to invest in dividend paying stocks is because I am a long term investor and it is very nice to collect dividends while you hold the stock, for me to sell a stock it needs to have a fast movement on the upside of 25% or more, if that is not the case I am fine with waiting for a long time and let the share increase in price as I keep my investment position.
Another reason why I am interested in adding more shares to my current position in $CAT is because of their good revenues, during 2018 they reported great earnings and good margins of profit, their balance sheet is ok and they are a world wide company that is has great brand power and is recognizable in many countries.
Below are some facts about this company so you can consider the stock and make your own decision based on your own research:
Stock Assessment – Caterpillar
Valuation and factors that move the stock
Caterpillar – Company Information
Company Name And Ticker Symbol: Caterpillar – $CAT
Company History: Caterpillar Inc. is an American Fortune 100 corporation which designs, develops, engineers, manufactures, markets and sells machinery, engines, financial products and insurance to customers via a worldwide dealer network. It is the world’s largest construction equipment manufacturer. In 2016 Caterpillar was ranked #59 on the Fortune 500 list and #194 on the Global Fortune 500 list. Caterpillar stock is a component of the Dow Jones Industrial Average. – This information came from the companies Wiki and it provides a basic idea of where what the company is about and how they got started, as you can see designing and manufacturing engines is not really the easiest business to start, it requires a lot of capital and a lot of Engineering and this gives them a good competitive advantage, they also are very diversified and they have other assets that makes this company very valuable and a good one to possibly invest and collect dividend payments as you hold the stock.
Company Stock Information and Finances:
Stock Price: $141.32 (Down to $138 dollars in 2019) – Note that many stocks moved down the past 6 months due to Trade Wars with China and other factors, this gives you a good opportunity and entry point of you do decide to invest in them.
Market Cap: $79 Billion Dollars and share prices were up to $164 (52 week high)
Dividend Amount and Yield on Cost: $3.44 per share / 2.43% – Dividend payments are paid quarterly and they pay $.85 dollars per share, January 18th 2019 was the last ex dividend date to be able to collect payments for them.
P/E Ratio: 16
Trailing EPS: 9
Here you can see the profits and earnings chart for $CAT
Annual Revenue and Growth: $51 Billion dollars in Revenue and $5 billion in profits
Revenue per Employee: $448,000
Brand mentions in Search Engines and Video Websites:
Why do I use the Company Popularity Metrics to analyze a company? Well the answer is very simple, you have to remember that stock prices go up on down based on many factors, one of these factors is Branding and Popularity, sure it is nice to invest in a company and a business that you have passion about but if no one knows about this business not many people are going to buy their shares, the opportunity to be liquid is going to be low and not many people will be interested in buying shares, this could move share prices in a negative way, I like investing in companies that the public knows about and want to learn more about, if the company is not known and prices are high then it would not be a good investment for me, now you also have to remember that this could also be a negative, news travel fast and if a company is not performing well, share prices could plummet really fast, these are tools that will help you decide if this company is a good investment for you or not.
Want to Invest in Caterpillar? Here is how!
Are you ready to invest in $CAT and do not know how? Here I will show you how and were you can buy shares, as I mentioned before you always have to do your own research, investing comes with it’s own risks and there is always potential for losses, dividends are a way for me to hedge and I always like to average down when a stock is down trending, however risk can come with big rewards too, if you are ready to invest in this stock I am going to show you how.
To start investing today I am going to show you where you can buy shares with no fees, all you pay is for the share themselves and you can start collecting dividends, the app that I use is Robinhood and it works on your Android and Apple phones, you can start investing for very little and if you open an account today, you will get a free share from another company.
To open a Robinhood account follow these steps:
- Go to Investing4Profits.com on your smartphone and find this article
- Click on this Robinhood link and fill out the form to open your account
- Answer all of the simple questions to get your account and bank information verified
- Once your account is verified use the search option to find the Caterpillar stock
- Remember that you can only buy shares during active trade hours
- Use the chart to find the lowest price and hit the trade Button to buy or sell shares
Simple as that, now you are an active investor and you can start trading stocks for free, my investment style is to buy and hold for a long time but you can develop your own investing strategies and style, good luck!
November 2019 Update
As of November 3rd 2019 I am up 14% on Caterpillar, this is not counting the Divided payments received while holding the stock! There has been a lot of volatility and it has not been easy holding at times where the markets starts selling off however I have continued to invest and reinvesting the dividends as they come in. This is just an example of how powerful holding a stock in the long term can be and why it is important to do your own research to decide if a company is worth investing in.
If you enjoyed this post do me a favor and share the link with your friends and family, I am working hard to grow this website and provide you with content that will help you be a better investor, also if you do not have a stock market broker feel free to use the link in this post, you will receive a free share of a popular company just for using my link.
Also if you have questions feel free to post a comment or send me an email and I will answer you as soon as I can, same if you have ideas for new posts or suggestions.
Thanks and have a great day!