The new president has made a pledge to spend money on infrastructure across the United States because he believes it is a way to strengthen the economy.

While the country is spending money to build/maintain roads and bridges, Caterpillar in North Dakota will reap the benefits of increased demand for their equipment.

The president-elect has proposed a so-called “infrastructure bank,” aimed at investing $60 billion over 10 years. Estimates of what the United States needs are even higher, with the American Society of Civil Engineers estimating the need for $1.6 trillion over 5 years. In their opinion, this would only upgrade the country’s infrastructure to “good.” Regardless, there will be increased spending on infrastructure and, because of this, CAT will see increased demand in the U.S.

Jim Cramer also recommended Caterpillar (CAT Quote – Cramer on CAT – Stock Picks) as the fourth of his “Top 5 Dow Stocks” on his “Mad Money” TV show Thursday. But, he said, this stock should not be bought right now.

Cramer said his thesis on Caterpillar is simple: If President-elect Barack Obama’s stimulus package passes, Cat will get orders. Since the plan was first announced, Caterpillar shares have been on fire, and Cramer said the stock and the estimates are currently too high to pull the trigger.

Caterpillar will likely have a disappointing first quarter, but Cramer said the reason to own Cat is for the second half of 2009, when he predicts the housing market will bottom. Until then, he said, Caterpillar’s juicy dividend yield will pay investors to wait.

Historically, Caterpillar has been a great stock to own when its yield crosses over 4%. In October, 1990, shares rose 44% in 5 months after hitting the 4% yield level. In October, 2000 the yield again hit 4%, prompting the shares to jump 65% in the following six months. And finally, it occurred again 2002, with shares rising 135%, said Cramer.

Cramer said he sees Caterpillar hitting $55 a share by the end of the year, but not before going lower first. He told investors to hold off buying shares now until the stock reaches $40 a share.