CAT vs CP: Which Is the Better Dividend Stock?
As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CAT offers the higher yield at 0.74%, CAT has the higher dividend-safety score, and CP trades at the larger discount to fair value (+16%).
| Metric | CAT | CP |
|---|---|---|
| Forward yield | 0.74% | 0.73% |
| Annual dividend | $6.52 | $0.68 |
| Payout ratio | 30% | 20% |
| Years of growth | 32 yr | 1 yr |
| 5-yr dividend growth | 7.2% | 3.2% |
| 5-yr total return | 317% | 36% |
| Dividend safety score | 89 (A) | 67 (B) |
| Fair value estimate | $485.27 | $108.60 |
| Upside to fair value | -45% | +16% |
| Frequency | quarterly | quarterly |
| Market cap | $398.1B | $81.4B |
| P/E ratio | 43.9 | 29.7 |
Higher yield
CAT
0.74%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CP
+16% upside
CAT vs CP — FAQ
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