Question 1

Is CAT or LMT a better dividend stock?

Accepted Answer

On the data, CAT wins more head-to-head categories (5 vs 3). LMT offers the higher yield (2.37%), while CAT has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.

Question 2

Which has a higher dividend yield, CAT or LMT?

Accepted Answer

LMT has the higher forward dividend yield at 2.37%, versus 0.78% for CAT.

Question 3

Is CAT or LMT safer?

Accepted Answer

CAT has the higher dividend-safety score (90/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.

Question 4

Is CAT or LMT better value right now?

Accepted Answer

LMT trades at the larger discount to our fair-value estimate (+4% upside, fairly valued), versus -45% for CAT.

Metric	CAT	LMT
Forward yield	0.78%	2.37%
Annual dividend	$6.52	$13.80
Payout ratio	30%	50%
Years of growth	32 yr	23 yr
5-yr dividend growth	7.2%	6.4%
5-yr total return	321%	62%
Dividend safety score	90 (A)	89 (A)
Fair value estimate	$485.52	$604.90
Upside to fair value	-45%	+4%
Frequency	quarterly	quarterly
Market cap	$360.5B	$131.4B
P/E ratio	41.8	21.4

CAT vs LMT: Which Is the Better Dividend Stock?

CAT vs LMT — FAQ

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