ALG vs CAT: Which Is the Better Dividend Stock?
As of Oct 18, 2026, ALG and CAT are closely matched. ALG offers the higher yield at 0.90%, CAT has the higher dividend-safety score, and ALG looks like the better value (its fair-value estimate is 23% below its share price).
Key facts: ALG vs CAT
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Alamo Group Inc. (ALG) has the higher forward dividend yield at 0.90%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades ALG's dividend safety A (91/100) and CAT's A (92/100).
- By SmarterDividends' count as of Oct 18, 2026, ALG has raised its dividend for 11 consecutive years and CAT for 32.
- As of Oct 18, 2026, ALG pays out 15% of its earnings as dividends and CAT pays out 26%.
- As of Oct 18, 2026, ALG's fair-value estimate is 23% below its share price and CAT's fair-value estimate is 48% below its share price, so ALG looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ALG vs CAT: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/alg-vs-cat
| Metric | ALG | CAT |
|---|---|---|
| Forward yield | 0.90% | 0.89% |
| Annual dividend | $1.36 | $6.52 |
| Payout ratio | 15% | 26% |
| Years of growth | 11 yr | 32 yr |
| 5-yr dividend growth | 18.2% | 7.2% |
| 5-yr total return | 6% | 278% |
| Dividend safety score | 91 (A) | 92 (A) |
| Fair value estimate | $116.13 | $377.48 |
| Upside to fair value | -23% | -48% |
| Frequency | quarterly | quarterly |
| Market cap | $1.8B | $335.9B |
| P/E ratio | 18.1 | 31.5 |
Higher yield
ALG
0.90%
Safer dividend
CAT
Grade A
Faster growth
ALG
18.2%
Better value
ALG
-23% upside
ALG vs CAT — FAQ
Is ALG or CAT a better dividend stock?
ALG and CAT are closely matched. ALG has the higher yield; CAT scores better on safety.
Which has a higher dividend yield, ALG or CAT?
ALG has the higher forward dividend yield at 0.90%, versus 0.89% for CAT.
Is ALG or CAT safer?
CAT has the higher dividend-safety score (92/100 vs 91/100), reflecting stronger payout coverage and dividend-growth history.
Is ALG or CAT better value right now?
As of Oct 18, 2026, ALG looks like the better value: its fair-value estimate is 23% below its share price (overvalued). For CAT, its fair-value estimate is 48% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.