CARR vs CAT: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CARR offers the higher yield at 1.78%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-39%).
| Metric | CARR | CAT |
|---|---|---|
| Forward yield | 1.78% | 0.81% |
| Annual dividend | $0.96 | $6.52 |
| Payout ratio | 66% | 26% |
| Years of growth | 5 yr | 32 yr |
| 5-yr dividend growth | 19.2% | 7.2% |
| 5-yr total return | 3% | 297% |
| Dividend safety score | 70 (B) | 92 (A) |
| Fair value estimate | $23.50 | $492.78 |
| Upside to fair value | -56% | -39% |
| Frequency | quarterly | quarterly |
| Market cap | $44.8B | $371.9B |
| P/E ratio | 38.5 | 34.8 |
Higher yield
CARR
1.78%
Safer dividend
CAT
Grade A
Faster growth
CARR
19.2%
Better value
CAT
-39% upside
CARR vs CAT — FAQ
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