Totally agree. Those buying CAT for the dividend are taking on a lot of risk for a very low yield. Moreover, if they're reinvesting the dividend through a DRIP, they obviously don't need the income to live on. Therefore, they're in CAT for all the wrong reasons. When the inevitable correction comes, CAT has a lot of room on the downside from here. Given how far the market has risen without any participation from CAT, there's no reason to believe that CAT will do any better during a declining market. CAT is already in its own "bear" market.
So help me with your logic. You think that although Cat has not participated in the recent market run up that it will fall with the market during any correction. Right? Now if you believe that a full-fledged worldwide recession is on the horizon I'd agree with you. Cat's stock price is linked to its current forecast for revenue/profit generation. Clearly a deep recession would deeply affect Cat's revenue/profit generation. However, a correction as the name implies, occurs to correct the market's overvaluing of the underlying equities. So a correction occurs when the market has experienced a significant run up without the support of the economic fundamentals. You're correct in concluding that Cat hasn't participated in the recent run up of prices but I disagree that they'll fall much further if the market corrects for precisely that reason, Cat is not overpriced at this level. JMHO.
The "DOG OF THE DOW" will be at the forefront of the coming USA infrastructure boom, and the improving job market. The economy is now in the hands of the 4th part of government (Fed), that was designed to be independent of dysfunctional congressional politics. Bernanke and Yellen are saviors.