CAT vs DRS: Which Is the Better Dividend Stock?
As of Nov 12, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 6 head-to-head metrics. CAT offers the higher yield at 1.08%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 33% below its share price).
Key facts: CAT vs DRS
Data as of · Source: SmarterDividends data
- As of Nov 12, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 1.08%, versus 0.98% for Leonardo DRS, Inc. (DRS).
- By SmarterDividends' count as of Nov 12, 2026, CAT has raised its dividend for 32 consecutive years and DRS for 0.
- As of Nov 12, 2026, CAT pays out 24% of its earnings as dividends and DRS pays out 26%.
- As of Nov 12, 2026, CAT's fair-value estimate is 33% below its share price and DRS's fair-value estimate is 65% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs DRS: Dividend Yield, Safety & Value Compared," updated Nov 12, 2026, https://smarterdividends.com/compare/cat-vs-drs
| Metric | CAT | DRS |
|---|---|---|
| Forward yield | 1.08% | 0.98% |
| Annual dividend | $6.52 | $0.36 |
| Payout ratio | 24% | 26% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 189% | 262% |
| Dividend safety score | 90 (A) | — |
| Fair value estimate | $400.75 | $12.85 |
| Upside to fair value | -33% | -65% |
| Frequency | quarterly | quarterly |
| Market cap | $275.3B | $9.8B |
| P/E ratio | 23.6 | 26.9 |
Higher yield
CAT
1.08%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-33% upside
CAT vs DRS — FAQ
Is CAT or DRS a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 1). CAT offers the higher yield (1.08%), 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 DRS?
CAT has the higher forward dividend yield at 1.08%, versus 0.98% for DRS.
Is CAT or DRS safer?
Compare each stock's payout ratio, growth streak and cut history on its detail page to judge safety.
Is CAT or DRS better value right now?
As of Nov 12, 2026, CAT looks like the better value: its fair-value estimate is 33% below its share price (overvalued). For DRS, its fair-value estimate is 65% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.