2 Juggernaut Dividend Stocks to Buy With $500

Dividend stocks are a wonderful option to invest in. They can provide a steady income stream, drive compounding returns, and offer more portfolio stability. Generally this investing strategy focuses on larger and more financially stable companies that return immense value to shareholders through dividends and sometimes share repurchases. If you have a little disposable cash and are browsing for some dividend stock ideas, here are two solid options for different reasons.

With the books closed on 2024, (NYSE: CAT) boasted sales and revenues near $65 billion, making it the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, diesel-electric locomotives, and industrial gas turbines.

There are two primary things for investors to note about Caterpillar's long-term competitive advantages. First, the company has substantial intellectual property, a long list of patents across various engine technologies, and very real customer switching costs. Caterpillar has proven to provide customers with high-quality products at the lowest total cost of ownership, supporting its premium pricing strategy. Second, just as important as its product quality, or perhaps more so, is its distribution and service through its network of nearly 160 independent dealers with nearly 2,800 global locations.

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Source Fool.com