AOS vs CAT: Which Is the Better Dividend Stock?
As of July 2026, AOS and CAT are closely matched. AOS offers the higher yield at 2.45%, AOS has the higher dividend-safety score, and AOS trades at the larger discount to fair value (+21%).
| Metric | AOS | CAT |
|---|---|---|
| Forward yield | 2.45% | 0.74% |
| Annual dividend | $1.44 | $6.52 |
| Payout ratio | 37% | 30% |
| Years of growth | 33 yr | 32 yr |
| 5-yr dividend growth | 7.1% | 7.2% |
| 5-yr total return | -19% | 317% |
| Dividend safety score | 95 (A) | 89 (A) |
| Fair value estimate | $71.00 | $485.27 |
| Upside to fair value | +21% | -45% |
| Frequency | quarterly | quarterly |
| Market cap | $8.1B | $398.1B |
| P/E ratio | 15.7 | 43.9 |
Higher yield
AOS
2.45%
Safer dividend
AOS
Grade A
Faster growth
CAT
7.2%
Better value
AOS
+21% upside
AOS vs CAT — FAQ
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