ALLE vs CAT: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. ALLE offers the higher yield at 1.41%, CAT has the higher dividend-safety score, and ALLE looks like the better value (its fair-value estimate is 14% below its share price).
Key facts: ALLE vs CAT
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Allegion plc (ALLE) has the higher forward dividend yield at 1.41%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades ALLE's dividend safety B (76/100) and CAT's A (92/100).
- By SmarterDividends' count as of Oct 18, 2026, ALLE has raised its dividend for 11 consecutive years and CAT for 32.
- As of Oct 18, 2026, ALLE pays out 28% of its earnings as dividends and CAT pays out 26%.
- As of Oct 18, 2026, ALLE's fair-value estimate is 14% below its share price and CAT's fair-value estimate is 48% below its share price, so ALLE looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ALLE vs CAT: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/alle-vs-cat
| Metric | ALLE | CAT |
|---|---|---|
| Forward yield | 1.41% | 0.89% |
| Annual dividend | $2.20 | $6.52 |
| Payout ratio | 28% | 26% |
| Years of growth | 11 yr | 32 yr |
| 5-yr dividend growth | 9.8% | 7.2% |
| 5-yr total return | 27% | 278% |
| Dividend safety score | 76 (B) | 92 (A) |
| Fair value estimate | $134.46 | $377.48 |
| Upside to fair value | -14% | -48% |
| Frequency | quarterly | quarterly |
| Market cap | $13.3B | $335.9B |
| P/E ratio | 20.5 | 31.5 |
Higher yield
ALLE
1.41%
Safer dividend
CAT
Grade A
Faster growth
ALLE
9.8%
Better value
ALLE
-14% upside
ALLE vs CAT — FAQ
Is ALLE or CAT a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). ALLE offers the higher yield (1.41%), while CAT has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, ALLE or CAT?
ALLE has the higher forward dividend yield at 1.41%, versus 0.89% for CAT.
Is ALLE or CAT safer?
CAT has the higher dividend-safety score (92/100 vs 76/100), reflecting stronger payout coverage and dividend-growth history.
Is ALLE or CAT better value right now?
As of Oct 18, 2026, ALLE looks like the better value: its fair-value estimate is 14% below its share price (fairly valued). 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.