SmarterDividends

AME vs CAT: 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. CAT offers the higher yield at 0.80%, AME has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-40%).

MetricAMECAT
Forward yield0.56%0.80%
Annual dividend$1.36$6.52
Payout ratio19%26%
Years of growth6 yr32 yr
5-yr dividend growth11.5%7.2%
5-yr total return95%326%
Dividend safety score98 (A)92 (A)
Fair value estimate$142.06$493.16
Upside to fair value-41%-40%
Frequencyquarterlyquarterly
Market cap$55.5B$376.3B
P/E ratio35.435.2

Higher yield

CAT

0.80%

Safer dividend

AME

Grade A

Faster growth

AME

11.5%

Better value

CAT

-40% upside

AME vs CAT — FAQ

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