AOS vs CAT: Which Is the Better Dividend Stock?
As of Oct 30, 2026, AOS and CAT are closely matched. AOS offers the higher yield at 2.50%, AOS has the higher dividend-safety score, and AOS looks like the better value (its fair-value estimate is 12% above its share price).
Key facts: AOS vs CAT
Data as of · Source: SmarterDividends data
- As of Oct 30, 2026, A. O. Smith Corporation (AOS) has the higher forward dividend yield at 2.50%, versus 0.91% for Caterpillar Inc. (CAT).
- As of Oct 30, 2026, SmarterDividends grades AOS's dividend safety A (95/100) and CAT's A (92/100).
- By SmarterDividends' count as of Oct 30, 2026, AOS has raised its dividend for 33 consecutive years and CAT for 32.
- As of Oct 30, 2026, AOS pays out 40% of its earnings as dividends and CAT pays out 26%.
- As of Oct 30, 2026, AOS's fair-value estimate is 12% above its share price and CAT's fair-value estimate is 42% below its share price, so AOS looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "AOS vs CAT: Dividend Yield, Safety & Value Compared," updated Oct 30, 2026, https://smarterdividends.com/compare/aos-vs-cat
| Metric | AOS | CAT |
|---|---|---|
| Forward yield | 2.50% | 0.91% |
| Annual dividend | $1.52 | $6.52 |
| Payout ratio | 40% | 26% |
| Years of growth | 33 yr | 32 yr |
| 5-yr dividend growth | 7.1% | 7.2% |
| 5-yr total return | -22% | 255% |
| Dividend safety score | 95 (A) | 92 (A) |
| Fair value estimate | $70.82 | $377.48 |
| Upside to fair value | +12% | -42% |
| Frequency | quarterly | quarterly |
| Market cap | $8.6B | $297.6B |
| P/E ratio | 17.7 | 27.9 |
Higher yield
AOS
2.50%
Safer dividend
AOS
Grade A
Faster growth
CAT
7.2%
Better value
AOS
+12% upside
AOS vs CAT — FAQ
Is AOS or CAT a better dividend stock?
AOS and CAT are closely matched. AOS has the higher yield; AOS scores better on safety.
Which has a higher dividend yield, AOS or CAT?
AOS has the higher forward dividend yield at 2.50%, versus 0.91% for CAT.
Is AOS or CAT safer?
AOS has the higher dividend-safety score (95/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is AOS or CAT better value right now?
As of Oct 30, 2026, AOS looks like the better value: its fair-value estimate is 12% above its share price (fairly valued). For CAT, its fair-value estimate is 42% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.