CAT vs MMM: Which Is the Better Dividend Stock?
As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. MMM offers the higher yield at 1.71%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-45%).
| Metric | CAT | MMM |
|---|---|---|
| Forward yield | 0.78% | 1.71% |
| Annual dividend | $6.52 | $3.12 |
| Payout ratio | 30% | 54% |
| Years of growth | 32 yr | 1 yr |
| 5-yr dividend growth | 7.2% | -9.9% |
| 5-yr total return | 321% | 6% |
| Dividend safety score | 90 (A) | 63 (C) |
| Fair value estimate | $485.52 | $78.40 |
| Upside to fair value | -45% | -55% |
| Frequency | quarterly | quarterly |
| Market cap | $360.5B | $91.8B |
| P/E ratio | 41.8 | 31.6 |
Higher yield
MMM
1.71%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-45% upside
CAT vs MMM — FAQ
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