SmarterDividends

AREC vs CAT: Which Is the Better Dividend Stock?

As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 6 head-to-head metrics. AREC offers the higher yield at 2.18%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-39%).

MetricARECCAT
Forward yield2.18%0.81%
Annual dividend$0.04$6.52
Payout ratio0%26%
Years of growth0 yr32 yr
5-yr dividend growth7.2%
5-yr total return-15%297%
Dividend safety score92 (A)
Fair value estimate$0.84$492.78
Upside to fair value-58%-39%
Frequencyannualquarterly
Market cap$211.3M$375.3B
P/E ratio35.2

Higher yield

AREC

2.18%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

CAT

-39% upside

AREC vs CAT — FAQ

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