SmarterDividends

CARR vs CAT: Which Is the Better Dividend Stock?

As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CARR offers the higher yield at 1.40%, CAT has the higher dividend-safety score, and CARR trades at the larger discount to fair value (-29%).

MetricCARRCAT
Forward yield1.40%0.74%
Annual dividend$0.96$6.52
Payout ratio61%30%
Years of growth5 yr32 yr
5-yr dividend growth19.2%7.2%
5-yr total return19%317%
Dividend safety score70 (B)89 (A)
Fair value estimate$48.53$485.27
Upside to fair value-29%-45%
Frequencyquarterlyquarterly
Market cap$55.6B$398.1B
P/E ratio45.943.9

Higher yield

CARR

1.40%

Safer dividend

CAT

Grade A

Faster growth

CARR

19.2%

Better value

CARR

-29% upside

CARR vs CAT — FAQ

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