CAT vs PBI: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. PBI offers the higher yield at 2.30%, CAT has the higher dividend-safety score, and PBI trades at the larger discount to fair value (+6%).
| Metric | CAT | PBI |
|---|---|---|
| Forward yield | 0.80% | 2.30% |
| Annual dividend | $6.52 | $0.40 |
| Payout ratio | 26% | 29% |
| Years of growth | 32 yr | 1 yr |
| 5-yr dividend growth | 7.2% | 8.4% |
| 5-yr total return | 324% | 141% |
| Dividend safety score | 92 (A) | 79 (B) |
| Fair value estimate | $487.98 | $18.47 |
| Upside to fair value | -40% | +6% |
| Frequency | quarterly | quarterly |
| Market cap | $374.1B | $2.4B |
| P/E ratio | 35.1 | 14.1 |
Higher yield
PBI
2.30%
Safer dividend
CAT
Grade A
Faster growth
PBI
8.4%
Better value
PBI
+6% upside
CAT vs PBI — FAQ
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