CAT vs DLB: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. DLB offers the higher yield at 2.40%, CAT has the higher dividend-safety score, and DLB looks like the better value (its fair-value estimate is 41% above its share price).
Key facts: CAT vs DLB
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Dolby Laboratories, Inc. (DLB) has the higher forward dividend yield at 2.40%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and DLB's B (79/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and DLB for 11.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and DLB pays out 60%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and DLB's fair-value estimate is 41% above its share price, so DLB looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs DLB: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-dlb
| Metric | CAT | DLB |
|---|---|---|
| Forward yield | 0.89% | 2.40% |
| Annual dividend | $6.52 | $1.44 |
| Payout ratio | 26% | 60% |
| Years of growth | 32 yr | 11 yr |
| 5-yr dividend growth | 7.2% | 8.9% |
| 5-yr total return | 278% | -28% |
| Dividend safety score | 92 (A) | 79 (B) |
| Fair value estimate | $377.48 | $84.65 |
| Upside to fair value | -48% | +41% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $5.6B |
| P/E ratio | 31.5 | 25.5 |
Higher yield
DLB
2.40%
Safer dividend
CAT
Grade A
Faster growth
DLB
8.9%
Better value
DLB
+41% upside
CAT vs DLB — FAQ
Is CAT or DLB a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). DLB offers the higher yield (2.40%), 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 DLB?
DLB has the higher forward dividend yield at 2.40%, versus 0.89% for CAT.
Is CAT or DLB safer?
CAT has the higher dividend-safety score (92/100 vs 79/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or DLB better value right now?
As of Oct 18, 2026, DLB looks like the better value: its fair-value estimate is 41% above its share price (undervalued). For CAT, its fair-value estimate is 48% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.