CAT vs VSEC: Which Is the Better Dividend Stock?
As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CAT offers the higher yield at 0.78%, VSEC has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-45%).
| Metric | CAT | VSEC |
|---|---|---|
| Forward yield | 0.78% | 0.20% |
| Annual dividend | $6.52 | $0.40 |
| Payout ratio | 30% | 14% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | 2.1% |
| 5-yr total return | 321% | 291% |
| Dividend safety score | 90 (A) | 99 (A) |
| Fair value estimate | $485.52 | $101.99 |
| Upside to fair value | -45% | -48% |
| Frequency | quarterly | quarterly |
| Market cap | $360.5B | $5.2B |
| P/E ratio | 41.8 | 69.0 |
Higher yield
CAT
0.78%
Safer dividend
VSEC
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-45% upside
CAT vs VSEC — FAQ
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