CAT vs DRS: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 6 head-to-head metrics. DRS offers the higher yield at 0.96%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-39%).
| Metric | CAT | DRS |
|---|---|---|
| Forward yield | 0.80% | 0.96% |
| Annual dividend | $6.52 | $0.36 |
| Payout ratio | 26% | 30% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 297% | 264% |
| Dividend safety score | 92 (A) | — |
| Fair value estimate | $492.78 | $21.48 |
| Upside to fair value | -39% | -42% |
| Frequency | quarterly | quarterly |
| Market cap | $366.0B | $10.1B |
| P/E ratio | 34.3 | 31.7 |
Higher yield
DRS
0.96%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-39% upside
CAT vs DRS — FAQ
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