BAFBF vs CAT: Which Is the Better Dividend Stock?
As of Oct 22, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. BAFBF offers the higher yield at 1.60%, CAT has the higher dividend-safety score, and BAFBF looks like the better value (its fair-value estimate is 25% above its share price).
Key facts: BAFBF vs CAT
Data as of · Source: SmarterDividends data
- As of Oct 22, 2026, Balfour Beatty plc (BAFBF) has the higher forward dividend yield at 1.60%, versus 0.88% for Caterpillar Inc. (CAT).
- As of Oct 22, 2026, SmarterDividends grades BAFBF's dividend safety C (61/100) and CAT's A (92/100).
- By SmarterDividends' count as of Oct 22, 2026, BAFBF has raised its dividend for 4 consecutive years and CAT for 32.
- As of Oct 22, 2026, BAFBF pays out 27% of its earnings as dividends and CAT pays out 26%.
- As of Oct 22, 2026, BAFBF's fair-value estimate is 25% above its share price and CAT's fair-value estimate is 49% below its share price, so BAFBF looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAFBF vs CAT: Dividend Yield, Safety & Value Compared," updated Oct 22, 2026, https://smarterdividends.com/compare/bafbf-vs-cat
| Metric | BAFBF | CAT |
|---|---|---|
| Forward yield | 1.60% | 0.88% |
| Annual dividend | $0.19 | $6.52 |
| Payout ratio | 27% | 26% |
| Years of growth | 4 yr | 32 yr |
| 5-yr dividend growth | — | 7.2% |
| 5-yr total return | 267% | 278% |
| Dividend safety score | 61 (C) | 92 (A) |
| Fair value estimate | $14.50 | $377.48 |
| Upside to fair value | +25% | -49% |
| Frequency | semiannual | quarterly |
| Market cap | $5.4B | $340.3B |
| P/E ratio | 16.6 | 31.9 |
Higher yield
BAFBF
1.60%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
BAFBF
+25% upside
BAFBF vs CAT — FAQ
Is BAFBF or CAT a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 2). BAFBF offers the higher yield (1.60%), 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, BAFBF or CAT?
BAFBF has the higher forward dividend yield at 1.60%, versus 0.88% for CAT.
Is BAFBF or CAT safer?
CAT has the higher dividend-safety score (92/100 vs 61/100), reflecting stronger payout coverage and dividend-growth history.
Is BAFBF or CAT better value right now?
As of Oct 22, 2026, BAFBF looks like the better value: its fair-value estimate is 25% above its share price (undervalued). For CAT, its fair-value estimate is 49% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.