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 (2.55%), 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 2.55%, versus 0.72% for CAT.

Question 3

Is CAT or LMT safer?

Accepted Answer

CAT has the higher dividend-safety score (89/100 vs 85/100), 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 (-8% upside, fairly valued), versus -47% for CAT.

Metric	CAT	LMT
Forward yield	0.72%	2.55%
Annual dividend	$6.52	$13.80
Payout ratio	30%	65%
Years of growth	32 yr	23 yr
5-yr dividend growth	7.2%	6.6%
5-yr total return	318%	43%
Dividend safety score	89 (A)	85 (A)
Fair value estimate	$485.90	$498.72
Upside to fair value	-47%	-8%
Frequency	quarterly	quarterly
Market cap	$419.4B	$124.6B
P/E ratio	45.3	26.2

CAT vs LMT: Which Is the Better Dividend Stock?

CAT vs LMT — FAQ

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