Here's a revised version of the content to ensure it is plagiarism-free and unique:
"Since the beginning of this year, the Dow Jones Industrial Average has been trailing behind both the S&P 500 and the Nasdaq Composite. However, this performance gap does not apply to all Dow stocks.
Caterpillar (NYSE: CAT), International Business Machines (NYSE: IBM), and Microsoft (NASDAQ: MSFT) have all seen their stock prices rise by more than 10% year-to-date. Here's why these three dividend-paying stocks could have more room to grow:
Caterpillar is currently close to a cyclical high, although this may not be its peak.
The company, known for its construction, mining, infrastructure, energy, power, and transportation machinery equipment, reported a decline in sales volume in the fourth quarter.
However, this was more than offset by a substantial increase in price. Caterpillar had a remarkable year in 2023, achieving record sales of $67.1 billion, record adjusted operating profit of $13.7 billion, and record free cash flow of $10 billion from its machinery, energy, and transportation segment.
While the company's guidance for 2024 suggests sales similar to those in 2023 and free cash flow "in the top half" of the estimated range, factors such as lower interest rates and infrastructure spending could positively impact its performance.
Microsoft has been achieving new all-time intraday and closing highs, driven by its robust AI initiatives, particularly through various Microsoft Copilots embedded in existing applications like Microsoft 365 and GitHub.
The company's 44.2% trailing 12-month operating margin is its highest in over 20 years, indicating strong growth.
Microsoft also distributes more in dividends than any other U.S.-based company, having increased its payouts by 63% in the last five years.
Despite its low yield, Microsoft's dividend growth has outpaced its stock price, which is a positive sign for shareholders.
IBM, another Dow stock, has been experiencing significant growth in its AI business, primarily through the development of the Watson platform.
Since the beginning of 2024, IBM's stock has surged by 18.3%, outperforming the S&P 500.
The company's revenue grew by 3% in 2024, and it generated free cash flow of $11.2 billion, its best result since 2019.
IBM's high dividend yield is supported by its strong free cash flow, with management expecting it to grow by about 7% to $12 billion in 2024.
In conclusion, Caterpillar, IBM, and Microsoft have demonstrated resilience and potential for further growth, making them compelling options for investors seeking dividend-paying stocks with growth prospects."
Let me know if you need any more help!