BW-PA vs CAT: Which Is the Better Dividend Stock?
As of Oct 27, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 6 head-to-head metrics. BW-PA offers the higher yield at 10.82%, CAT has the higher dividend-safety score, and BW-PA looks like the better value (its fair-value estimate is 38% above its share price).
Key facts: BW-PA vs CAT
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Babcock & Wilcox Enterprises, Inc. (BW-PA) has the higher forward dividend yield at 10.82%, versus 0.94% for Caterpillar Inc. (CAT).
- As of Oct 27, 2026, SmarterDividends grades BW-PA's dividend safety B (67/100) and CAT's A (92/100).
- By SmarterDividends' count as of Oct 27, 2026, BW-PA has raised its dividend for 0 consecutive years and CAT for 32.
- As of Oct 27, 2026, BW-PA's fair-value estimate is 38% above its share price and CAT's fair-value estimate is 45% below its share price, so BW-PA looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BW-PA vs CAT: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/bw-pa-vs-cat
| Metric | BW-PA | CAT |
|---|---|---|
| Forward yield | 10.82% | 0.94% |
| Annual dividend | $1.94 | $6.52 |
| Payout ratio | — | 26% |
| Years of growth | 0 yr | 32 yr |
| 5-yr dividend growth | — | 7.2% |
| 5-yr total return | -33% | 255% |
| Dividend safety score | 67 (B) | 92 (A) |
| Fair value estimate | $24.64 | $377.48 |
| Upside to fair value | +38% | -45% |
| Frequency | quarterly | quarterly |
| Market cap | — | $318.2B |
| P/E ratio | 62.6 | 29.8 |
Higher yield
BW-PA
10.82%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
BW-PA
+38% upside
BW-PA vs CAT — FAQ
Is BW-PA or CAT a better dividend stock?
On the data, CAT wins more head-to-head categories (4 vs 2). BW-PA offers the higher yield (10.82%), 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, BW-PA or CAT?
BW-PA has the higher forward dividend yield at 10.82%, versus 0.94% for CAT.
Is BW-PA or CAT safer?
CAT has the higher dividend-safety score (92/100 vs 67/100), reflecting stronger payout coverage and dividend-growth history.
Is BW-PA or CAT better value right now?
As of Oct 27, 2026, BW-PA looks like the better value: its fair-value estimate is 38% above its share price (undervalued). For CAT, its fair-value estimate is 45% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.