CAT vs LII: Which Is the Better Dividend Stock?
As of July 2026, CAT and LII are closely matched. LII offers the higher yield at 0.95%, CAT has the higher dividend-safety score, and LII trades at the larger discount to fair value (-35%).
| Metric | CAT | LII |
|---|---|---|
| Forward yield | 0.61% | 0.95% |
| Annual dividend | $6.52 | $5.44 |
| Payout ratio | 30% | 23% |
| Years of growth | 32 yr | 16 yr |
| 5-yr dividend growth | 7.2% | 10.4% |
| 5-yr total return | 382% | 71% |
| Dividend safety score | 89 (A) | 88 (A) |
| Fair value estimate | $485.01 | $367.67 |
| Upside to fair value | -51% | -35% |
| Frequency | quarterly | quarterly |
| Market cap | $490.5B | $19.9B |
| P/E ratio | 52.9 | 25.4 |
Higher yield
LII
0.95%
Safer dividend
CAT
Grade A
Faster growth
LII
10.4%
Better value
LII
-35% upside
CAT vs LII — FAQ
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