SmarterDividends

ALG vs CAT: Which Is the Better Dividend Stock?

As of August 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 6 head-to-head metrics. ALG offers the higher yield at 0.80%, ALG has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-1%).

MetricALGCAT
Forward yield0.80%0.80%
Annual dividend$1.32$6.52
Payout ratio15%26%
Years of growth11 yr32 yr
5-yr dividend growth18.2%7.2%
5-yr total return18%331%
Dividend safety score92 (A)92 (A)
Fair value estimate$69.78$818.06
Upside to fair value-58%-1%
Frequencyquarterlyquarterly
Market cap$2.0B$372.9B
P/E ratio19.835.0

Higher yield

ALG

0.80%

Safer dividend

ALG

Grade A

Faster growth

ALG

18.2%

Better value

CAT

-1% upside

ALG vs CAT — FAQ

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