This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Caterpillar Is My Annuity

NEW YORK (TheStreet) --I'm reasonably certain that no one on Caterpillar's (CAT) board of directors thinks of it as an annuity company, but I do. I'm certain the company's heavy equipment is excellent but its unintentional by-products are even better.

I can't think of a company in the past year that has been disparaged more than has Caterpillar.

It's CEO, Douglas Oberhelm, has been frequently suggested as a leading candidate for "Worst CEO of 2013," collected by TheStreet's Herb Greenberg.

Famed short-seller Jim Chanos called Caterpillar his "short of the year." Whether Chanos' thesis is correct or not, he certainly helped place a near-term upper limit on Caterpillar shares. 

It's not easy keeping a low profile when you're a member of the Dow Jones Industrial Index, which spent much of the year hitting new record highs while your share price languished. But while "Type A" personalities require a stock that is firing on all cylinders, I prefer one that has settled into mediocrity and knows how to tread in place.

That's Caterpillar.

Let's look at the simple 2013 year-to-date statistics. While the DJIA has advanced 20.2%, Caterpillar has fallen 4%, but only down 2.1% if you plow dividends back into the equation. Unfortunately for those 2013 Caterpillar statistics, the company advanced a dividend payment from 2013 to 2012 in order to take advantage of a lower tax environment.

CAT Chart
data by YCharts

While no one really cares about the sum of the absolute value of share price moves, Caterpillar would be worshiped if they did.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CAT $63.15 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs