CAT vs ITW: 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. ITW offers the higher yield at 2.33%, CAT has the higher dividend-safety score, and ITW trades at the larger discount to fair value (-42%).
| Metric | CAT | ITW |
|---|---|---|
| Forward yield | 0.74% | 2.33% |
| Annual dividend | $6.52 | $6.44 |
| Payout ratio | 30% | 59% |
| Years of growth | 32 yr | 38 yr |
| 5-yr dividend growth | 7.2% | 7.1% |
| 5-yr total return | 317% | 19% |
| Dividend safety score | 89 (A) | 88 (A) |
| Fair value estimate | $485.27 | $160.79 |
| Upside to fair value | -45% | -42% |
| Frequency | quarterly | quarterly |
| Market cap | $398.1B | $78.2B |
| P/E ratio | 43.9 | 25.6 |
Higher yield
ITW
2.33%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
ITW
-42% upside
CAT vs ITW — FAQ
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