CAT vs GD: Which Is the Better Dividend Stock?
As of July 2026, CAT and GD are closely matched. GD offers the higher yield at 1.63%, GD has the higher dividend-safety score, and GD trades at the larger discount to fair value (-21%).
| Metric | CAT | GD |
|---|---|---|
| Forward yield | 0.78% | 1.63% |
| Annual dividend | $6.52 | $6.36 |
| Payout ratio | 30% | 38% |
| Years of growth | 32 yr | 34 yr |
| 5-yr dividend growth | 7.2% | 6.5% |
| 5-yr total return | 321% | 93% |
| Dividend safety score | 90 (A) | 99 (A) |
| Fair value estimate | $485.52 | $306.64 |
| Upside to fair value | -45% | -21% |
| Frequency | quarterly | quarterly |
| Market cap | $360.5B | $103.0B |
| P/E ratio | 41.8 | 24.8 |
Higher yield
GD
1.63%
Safer dividend
GD
Grade A
Faster growth
CAT
7.2%
Better value
GD
-21% upside
CAT vs GD — FAQ
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