CAT vs CMI: Which Is the Better Dividend Stock?
As of Oct 25, 2026, CMI (Cummins Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. CMI offers the higher yield at 1.70%, CAT has the higher dividend-safety score, and CMI looks like the better value (its fair-value estimate is 44% below its share price).
Key facts: CAT vs CMI
Data as of · Source: SmarterDividends data
- As of Oct 25, 2026, Cummins Inc. (CMI) has the higher forward dividend yield at 1.70%, versus 0.95% for Caterpillar Inc. (CAT).
- As of Oct 25, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and CMI's A (92/100).
- By SmarterDividends' count as of Oct 25, 2026, CAT has raised its dividend for 32 consecutive years and CMI for 20.
- As of Oct 25, 2026, CAT pays out 26% of its earnings as dividends and CMI pays out 41%.
- As of Oct 25, 2026, CAT's fair-value estimate is 45% below its share price and CMI's fair-value estimate is 44% below its share price, so CMI looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs CMI: Dividend Yield, Safety & Value Compared," updated Oct 25, 2026, https://smarterdividends.com/compare/cat-vs-cmi
| Metric | CAT | CMI |
|---|---|---|
| Forward yield | 0.95% | 1.70% |
| 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 | 255% | 147% |
| Dividend safety score | 92 (A) | 92 (A) |
| Fair value estimate | $377.48 | $290.82 |
| Upside to fair value | -45% | -44% |
| Frequency | quarterly | quarterly |
| Market cap | $315.8B | $71.4B |
| P/E ratio | 29.6 | 26.4 |
Higher yield
CMI
1.70%
Safer dividend
CAT
Grade A
Faster growth
CMI
7.7%
Better value
CMI
-44% upside
CAT vs CMI — FAQ
Is CAT or CMI a better dividend stock?
On the data, CMI wins more head-to-head categories (4 vs 3). CMI offers the higher yield (1.70%), 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, CAT or CMI?
CMI has the higher forward dividend yield at 1.70%, versus 0.95% for CAT.
Is CAT or CMI safer?
CAT has the higher dividend-safety score (92/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or CMI better value right now?
As of Oct 25, 2026, CMI looks like the better value: its fair-value estimate is 44% below its share price (overvalued). For CAT, its fair-value estimate is 45% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.