CAT vs HON: 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. HON offers the higher yield at 4.23%, CAT has the higher dividend-safety score, and HON trades at the larger discount to fair value (+53%).
| Metric | CAT | HON |
|---|---|---|
| Forward yield | 0.74% | 4.23% |
| Annual dividend | $6.52 | $9.52 |
| Payout ratio | 30% | 74% |
| Years of growth | 32 yr | 15 yr |
| 5-yr dividend growth | 7.2% | 5.1% |
| 5-yr total return | 317% | -2% |
| Dividend safety score | 89 (A) | 83 (A) |
| Fair value estimate | $485.27 | $344.03 |
| Upside to fair value | -45% | +53% |
| Frequency | quarterly | monthly |
| Market cap | $398.1B | $71.7B |
| P/E ratio | 43.9 | 18.0 |
Higher yield
HON
4.23%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
HON
+53% upside
CAT vs HON — FAQ
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