CAT vs LII: Which Is the Better Dividend Stock?
As of September 2026, CAT and LII are closely matched. LII offers the higher yield at 1.39%, CAT has the higher dividend-safety score, and LII trades at the larger discount to fair value (-6%).
| Metric | CAT | LII |
|---|---|---|
| Forward yield | 0.80% | 1.39% |
| Annual dividend | $6.52 | $5.44 |
| Payout ratio | 26% | 23% |
| Years of growth | 32 yr | 16 yr |
| 5-yr dividend growth | 7.2% | 10.4% |
| 5-yr total return | 324% | 33% |
| Dividend safety score | 92 (A) | 90 (A) |
| Fair value estimate | $487.98 | $365.47 |
| Upside to fair value | -40% | -6% |
| Frequency | quarterly | quarterly |
| Market cap | $374.1B | $13.5B |
| P/E ratio | 35.1 | 17.4 |
Higher yield
LII
1.39%
Safer dividend
CAT
Grade A
Faster growth
LII
10.4%
Better value
LII
-6% upside
CAT vs LII — FAQ
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