CARR vs CAT: Which Is the Better Dividend Stock?
As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CARR offers the higher yield at 1.40%, CAT has the higher dividend-safety score, and CARR trades at the larger discount to fair value (-29%).
| Metric | CARR | CAT |
|---|---|---|
| Forward yield | 1.40% | 0.74% |
| Annual dividend | $0.96 | $6.52 |
| Payout ratio | 61% | 30% |
| Years of growth | 5 yr | 32 yr |
| 5-yr dividend growth | 19.2% | 7.2% |
| 5-yr total return | 19% | 317% |
| Dividend safety score | 70 (B) | 89 (A) |
| Fair value estimate | $48.53 | $485.27 |
| Upside to fair value | -29% | -45% |
| Frequency | quarterly | quarterly |
| Market cap | $55.6B | $398.1B |
| P/E ratio | 45.9 | 43.9 |
Higher yield
CARR
1.40%
Safer dividend
CAT
Grade A
Faster growth
CARR
19.2%
Better value
CARR
-29% upside
CARR vs CAT — FAQ
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