Here’s something interesting pointed out by the Financial Times’ U.S. financial commentator, Robert Armstrong: industrial stocks have done well lately—really well. Since September 30, the S&P 500 industrials are up 20%, nearly double the full index.
This is unusual, to say the least, because there is a widespread expectation that a recession is coming soon. Industrial stocks are cyclical, and therefore supposed to perform poorly heading into an economic downturn.
Let’s take a closer look at Caterpillar, which is up more than 40% since the end of September and has a decent dividend yield—in excess of 2%—as well.
This post appeared at Dividend Stocks Research.