Caterpillar (CAT) Dividend Seen at Risk

With today's job cuts and lower outlook, chatter suggests Caterpillar (NYSE: CAT) could cut its dividend, which is yielding an astonishing 4.7%.

The company's dividend increased 15 percent in 2013, 17 percent in 2014 and 10 percent in 2015.

In a research note out this morning before the big announcement, Axiom Capital analyst Gordon Johnson said he thinks CAT will only earn in the high-$2 EPS range in 2016, falling to sub-$2 in 2017. Meanwhile, the annual dividend is $3.08/share.

In addition to the lower earnings power, the company might feel political pressure given the job cuts.

Market pundit Jim Cramer also said he thinks people are going to say the dividend is in jeopardy.

$CAT -- these numbers were chilling. I think people are going to say the dividend is in jeopardy... #cramerQ http://t.co/9GEQajTZiQ

— Jim Cramer (@jimcramer) September 24, 2015

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