Summary: Caterpillar is the world’s largest and one of the oldest manufacturers of construction and mining equipment. In this guide, you will learn how to buy Caterpillar stock through an online brokerage platform like eToro.
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About Caterpillar
Caterpillar Inc. (NYSE: CAT), commonly known as CAT, is the world’s largest manufacturer of construction, mining, and engineering equipment. In addition, Caterpillar also licenses and markets clothing, workwear boots, and the Cat smartphone brand. As a Dow Jones Industrial Average component, Caterpillar maintains its position as a key player in the global industrial landscape.
How to buy Caterpillar stock: Step-by-step
If you’re looking to buy Caterpillar stock, you can do so easily by following these simple steps:
- Find a broker: Find a brokerage platform that lists CAT shares;
- Register and fund your account;
- Place a trade: Find the CAT stock on the broker’s platform and place a trade;
- Monitor your investment.
Step 1: Find a broker
The first step is selecting a brokerage platform.
There are many brokerage options available, but our go-to broker is eToro, a leading platform with a range of useful features, including:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- Charting tools;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Step 2: Fund your account
Once you’ve found a broker, you can open and fund an account.
Registering is usually simple and boils down to following the broker’s instructions and providing some personal documentation to get through the know-your-customer (KYC).
As for funding, most brokers offer various funding options, including bank transfers, wire transfers, and electronic transfers from other brokerage accounts.
Step 3: Place your order
Once you’ve funded your account, you can place an order and buy Caterpillar stock. Here’s how to do it:
- Log in to your brokerage account;
- Navigate to the trading platform and find the CAT stock;
- Specify the number of shares you want to buy;
- Choose the type of order you want to place (i.e., market, limit, stop-loss, etc.);
- Review your order details and submit the order.
Step 4: Monitor your investment
After completing your trades, you have to carefully observe how your investments are performing. For starters, use the charts and market analysis tools provided by your brokerage platform to monitor the movement of stock prices and stay informed about any news or events that could affect them.
In addition, try and seek guidance from experienced investors regarding your stock choices. You can follow seasoned analysts on social media or take advantage of copy trading features offered by your brokerage platform.
If you spot a more promising investment opportunity, be adaptable in adjusting your trading strategy to increase your chances of long-term profitability. That involves selling your CAT shares if the indicators point to it being a solid idea.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Caterpillar stock price today
Common investing mistakes when buying stocks
If you’re new to investing, it will help to familiarize yourself with some common investing mistakes, such as:
- Not doing your own research: Failing to do research on the company and the broader industry before investing can lead to unforeseen losses;
- Ignoring risk management and diversification: Investing too much in a single stock can expose you to significant risk if the stock performs poorly;
- Emotional investing: Making investment decisions based on emotions such as fear or greed — or based on hype — rather than fundamental and technical analysis can lead to costly mistakes.
Pros and cons of investing in Caterpillar
Pros
- Market presence: Caterpillar is the largest company of its kind;
- Strong brand: Caterpillar is also renowned for its high-quality, recognizable products, which can translate into customer loyalty;
- Good future outlook: The Caterpillar management revised the company’s medium-term outlook;
- Dividends: Caterpillar pays dividends.
Cons
- Competition: Despite being the largest company of its kind, Caterpillar still faces competition in core markets which could shift market trends;
- Commodity dependence: Due to the nature of the industry, Caterpillar’s performance is closely tied to commodity prices, particularly metals and energy;
- Environmental concerns: Challenges related to emissions standards and environmental regulations could deter some investors.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Caterpillar stock
Is Caterpillar publicly traded?
Yes, Caterpillar is a publicly traded company listed on the New York Stock Exchange under the stock symbol CAT.
Does Caterpillar pay stock dividends?
Yes, Caterpillar pays dividends.
Can I buy Caterpillar stock directly from the company?
Existing shareholders and non-shareholders can request direct stock purchases from Caterpillar’s transfer agent.
Where to buy Caterpillar stock?
You can buy Caterpillar stock on investment platforms such as eToro.
How to buy Caterpillar stock?
To buy Caterpillar stock, you can open a trading account on an online stock trading platform such as eToro.
Does Caterpillar offer dividend reinvestment plans?
Yes, Caterpillar does have a dividend reinvestment plan.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
