CAT vs CP: Which Is the Better Dividend Stock?
As of Oct 23, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CAT offers the higher yield at 0.93%, CAT has the higher dividend-safety score, and CP looks like the better value (its fair-value estimate is 10% below its share price).
Key facts: CAT vs CP
Data as of · Source: SmarterDividends data
- As of Oct 23, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 0.93%, versus 0.84% for Canadian Pacific Kansas City Limited (CP).
- As of Oct 23, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and CP's B (69/100).
- By SmarterDividends' count as of Oct 23, 2026, CAT has raised its dividend for 32 consecutive years and CP for 1.
- As of Oct 23, 2026, CAT pays out 26% of its earnings as dividends and CP pays out 22%.
- As of Oct 23, 2026, CAT's fair-value estimate is 46% below its share price and CP's fair-value estimate is 10% below its share price, so CP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs CP: Dividend Yield, Safety & Value Compared," updated Oct 23, 2026, https://smarterdividends.com/compare/cat-vs-cp
| Metric | CAT | CP |
|---|---|---|
| Forward yield | 0.93% | 0.84% |
| Annual dividend | $6.52 | $0.76 |
| Payout ratio | 26% | 22% |
| Years of growth | 32 yr | 1 yr |
| 5-yr dividend growth | 7.2% | 3.2% |
| 5-yr total return | 255% | 28% |
| Dividend safety score | 92 (A) | 69 (B) |
| Fair value estimate | $377.48 | $81.25 |
| Upside to fair value | -46% | -10% |
| Frequency | quarterly | quarterly |
| Market cap | $323.6B | $79.7B |
| P/E ratio | 30.3 | 29.1 |
Higher yield
CAT
0.93%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CP
-10% upside
CAT vs CP — FAQ
Is CAT or CP a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). CAT offers the higher yield (0.93%), 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 CP?
CAT has the higher forward dividend yield at 0.93%, versus 0.84% for CP.
Is CAT or CP safer?
CAT has the higher dividend-safety score (92/100 vs 69/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or CP better value right now?
As of Oct 23, 2026, CP looks like the better value: its fair-value estimate is 10% below its share price (fairly valued). For CAT, its fair-value estimate is 46% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.