AOS vs CAT: Which Is the Better Dividend Stock?
As of September 2026, AOS and CAT are closely matched. AOS offers the higher yield at 2.51%, AOS has the higher dividend-safety score, and AOS trades at the larger discount to fair value (+15%).
| Metric | AOS | CAT |
|---|---|---|
| Forward yield | 2.51% | 0.80% |
| Annual dividend | $1.44 | $6.52 |
| Payout ratio | 40% | 26% |
| Years of growth | 33 yr | 32 yr |
| 5-yr dividend growth | 7.1% | 7.2% |
| 5-yr total return | -6% | 326% |
| Dividend safety score | 95 (A) | 92 (A) |
| Fair value estimate | $65.91 | $493.16 |
| Upside to fair value | +15% | -40% |
| Frequency | quarterly | quarterly |
| Market cap | $7.8B | $376.3B |
| P/E ratio | 16.0 | 35.2 |
Higher yield
AOS
2.51%
Safer dividend
AOS
Grade A
Faster growth
CAT
7.2%
Better value
AOS
+15% upside
AOS vs CAT — FAQ
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