BAH vs CAT: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. BAH offers the higher yield at 3.18%, CAT has the higher dividend-safety score, and BAH looks like the better value (its fair-value estimate is 8% above its share price).
Key facts: BAH vs CAT
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Booz Allen Hamilton Holding Corporation (BAH) has the higher forward dividend yield at 3.18%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades BAH's dividend safety A (81/100) and CAT's A (92/100).
- By SmarterDividends' count as of Oct 18, 2026, BAH has raised its dividend for 10 consecutive years and CAT for 32.
- As of Oct 18, 2026, BAH pays out 36% of its earnings as dividends and CAT pays out 26%.
- As of Oct 18, 2026, BAH's fair-value estimate is 8% above its share price and CAT's fair-value estimate is 48% below its share price, so BAH looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BAH vs CAT: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/bah-vs-cat
| Metric | BAH | CAT |
|---|---|---|
| Forward yield | 3.18% | 0.89% |
| Annual dividend | $2.36 | $6.52 |
| Payout ratio | 36% | 26% |
| Years of growth | 10 yr | 32 yr |
| 5-yr dividend growth | 12.2% | 7.2% |
| 5-yr total return | -12% | 278% |
| Dividend safety score | 81 (A) | 92 (A) |
| Fair value estimate | $80.05 | $377.48 |
| Upside to fair value | +8% | -48% |
| Frequency | quarterly | quarterly |
| Market cap | $8.9B | $335.9B |
| P/E ratio | 11.7 | 31.5 |
Higher yield
BAH
3.18%
Safer dividend
CAT
Grade A
Faster growth
BAH
12.2%
Better value
BAH
+8% upside
BAH vs CAT — FAQ
Is BAH or CAT a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). BAH offers the higher yield (3.18%), 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, BAH or CAT?
BAH has the higher forward dividend yield at 3.18%, versus 0.89% for CAT.
Is BAH or CAT safer?
CAT has the higher dividend-safety score (92/100 vs 81/100), reflecting stronger payout coverage and dividend-growth history.
Is BAH or CAT better value right now?
As of Oct 18, 2026, BAH looks like the better value: its fair-value estimate is 8% above its share price (fairly valued). For CAT, its fair-value estimate is 48% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.