CARR vs CAT: Which Is the Better Dividend Stock?
As of Nov 5, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CARR offers the higher yield at 1.72%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 30% below its share price).
Key facts: CARR vs CAT
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Carrier Global Corporation (CARR) has the higher forward dividend yield at 1.72%, versus 1.10% for Caterpillar Inc. (CAT).
- As of Nov 5, 2026, SmarterDividends grades CARR's dividend safety B (73/100) and CAT's A (91/100).
- By SmarterDividends' count as of Nov 5, 2026, CARR has raised its dividend for 5 consecutive years and CAT for 32.
- As of Nov 5, 2026, CARR pays out 67% of its earnings as dividends and CAT pays out 24%.
- As of Nov 5, 2026, CARR's fair-value estimate is 65% below its share price and CAT's fair-value estimate is 30% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CARR vs CAT: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/carr-vs-cat
| Metric | CARR | CAT |
|---|---|---|
| Forward yield | 1.72% | 1.10% |
| Annual dividend | $0.96 | $6.52 |
| Payout ratio | 67% | 24% |
| Years of growth | 5 yr | 32 yr |
| 5-yr dividend growth | 19.2% | 7.2% |
| 5-yr total return | -1% | 222% |
| Dividend safety score | 73 (B) | 91 (A) |
| Fair value estimate | $19.26 | $400.01 |
| Upside to fair value | -65% | -30% |
| Frequency | quarterly | quarterly |
| Market cap | $44.5B | $260.3B |
| P/E ratio | — | 22.3 |
Higher yield
CARR
1.72%
Safer dividend
CAT
Grade A
Faster growth
CARR
19.2%
Better value
CAT
-30% upside
CARR vs CAT — FAQ
Is CARR or CAT a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). CARR offers the higher yield (1.72%), 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, CARR or CAT?
CARR has the higher forward dividend yield at 1.72%, versus 1.10% for CAT.
Is CARR or CAT safer?
CAT has the higher dividend-safety score (91/100 vs 73/100), reflecting stronger payout coverage and dividend-growth history.
Is CARR or CAT better value right now?
As of Nov 5, 2026, CAT looks like the better value: its fair-value estimate is 30% below its share price (overvalued). For CARR, its fair-value estimate is 65% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.