CAT vs CMI: Which Is the Better Dividend Stock?
As of September 2026, CMI (Cummins Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. CMI offers the higher yield at 1.57%, CAT has the higher dividend-safety score, and CMI trades at the larger discount to fair value (-20%).
| Metric | CAT | CMI |
|---|---|---|
| Forward yield | 0.80% | 1.57% |
| Annual dividend | $6.52 | $8.80 |
| Payout ratio | 26% | 41% |
| Years of growth | 32 yr | 20 yr |
| 5-yr dividend growth | 7.2% | 7.7% |
| 5-yr total return | 324% | 150% |
| Dividend safety score | 92 (A) | 92 (A) |
| Fair value estimate | $487.98 | $445.95 |
| Upside to fair value | -40% | -20% |
| Frequency | quarterly | quarterly |
| Market cap | $374.1B | $77.2B |
| P/E ratio | 35.1 | 28.7 |
Higher yield
CMI
1.57%
Safer dividend
CAT
Grade A
Faster growth
CMI
7.7%
Better value
CMI
-20% upside
CAT vs CMI — FAQ
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