CAT vs ESAB: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 6 head-to-head metrics. CAT offers the higher yield at 0.80%, CAT has the higher dividend-safety score, and ESAB trades at the larger discount to fair value (-3%).
| Metric | CAT | ESAB |
|---|---|---|
| Forward yield | 0.80% | 0.56% |
| Annual dividend | $6.52 | $0.42 |
| Payout ratio | 26% | 13% |
| Years of growth | 32 yr | 3 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 324% | — |
| Dividend safety score | 92 (A) | 70 (B) |
| Fair value estimate | $487.98 | $72.85 |
| Upside to fair value | -40% | -3% |
| Frequency | quarterly | quarterly |
| Market cap | $374.1B | $4.7B |
| P/E ratio | 35.1 | 23.5 |
Higher yield
CAT
0.80%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
ESAB
-3% upside
CAT vs ESAB — FAQ
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