CAT vs DAC: Which Is the Better Dividend Stock?
As of Oct 15, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. DAC offers the higher yield at 2.43%, CAT has the higher dividend-safety score, and DAC looks like the better value (its fair-value estimate is 41% below its share price).
Key facts: CAT vs DAC
Data as of · Source: SmarterDividends data
- As of Oct 15, 2026, Danaos Corporation (DAC) has the higher forward dividend yield at 2.43%, versus 0.84% for Caterpillar Inc. (CAT).
- As of Oct 15, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and DAC's C (61/100).
- By SmarterDividends' count as of Oct 15, 2026, CAT has raised its dividend for 32 consecutive years and DAC for 4.
- As of Oct 15, 2026, CAT pays out 26% of its earnings as dividends and DAC pays out 12%.
- As of Oct 15, 2026, CAT's fair-value estimate is 50% below its share price and DAC's fair-value estimate is 41% below its share price, so DAC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs DAC: Dividend Yield, Safety & Value Compared," updated Oct 15, 2026, https://smarterdividends.com/compare/cat-vs-dac
| Metric | CAT | DAC |
|---|---|---|
| Forward yield | 0.84% | 2.43% |
| Annual dividend | $6.16 | $3.60 |
| Payout ratio | 26% | 12% |
| Years of growth | 32 yr | 4 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 292% | 127% |
| Dividend safety score | 92 (A) | 61 (C) |
| Fair value estimate | $377.48 | $94.90 |
| Upside to fair value | -50% | -41% |
| Frequency | quarterly | quarterly |
| Market cap | $344.3B | $2.9B |
| P/E ratio | 33.3 | 5.6 |
Higher yield
DAC
2.43%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
DAC
-41% upside
CAT vs DAC — FAQ
Is CAT or DAC a better dividend stock?
On the data, CAT wins more head-to-head categories (4 vs 3). DAC offers the higher yield (2.43%), 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 DAC?
DAC has the higher forward dividend yield at 2.43%, versus 0.84% for CAT.
Is CAT or DAC safer?
CAT has the higher dividend-safety score (92/100 vs 61/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or DAC better value right now?
As of Oct 15, 2026, DAC looks like the better value: its fair-value estimate is 41% below its share price (overvalued). For CAT, its fair-value estimate is 50% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.