CAT vs EMR: Which Is the Better Dividend Stock?
As of Oct 19, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. EMR offers the higher yield at 1.37%, EMR has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 48% below its share price).
Key facts: CAT vs EMR
Data as of · Source: SmarterDividends data
- As of Oct 19, 2026, Emerson Electric Co. (EMR) has the higher forward dividend yield at 1.37%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 19, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and EMR's A (97/100).
- By SmarterDividends' count as of Oct 19, 2026, CAT has raised its dividend for 32 consecutive years and EMR for 53.
- As of Oct 19, 2026, CAT pays out 26% of its earnings as dividends and EMR pays out 48%.
- As of Oct 19, 2026, CAT's fair-value estimate is 48% below its share price and EMR's fair-value estimate is 54% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs EMR: Dividend Yield, Safety & Value Compared," updated Oct 19, 2026, https://smarterdividends.com/compare/cat-vs-emr
| Metric | CAT | EMR |
|---|---|---|
| Forward yield | 0.89% | 1.37% |
| Annual dividend | $6.52 | $2.22 |
| Payout ratio | 26% | 48% |
| Years of growth | 32 yr | 53 yr |
| 5-yr dividend growth | 7.2% | 1.3% |
| 5-yr total return | 278% | 84% |
| Dividend safety score | 92 (A) | 97 (A) |
| Fair value estimate | $377.48 | $74.30 |
| Upside to fair value | -48% | -54% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $90.4B |
| P/E ratio | 31.5 | 35.9 |
Higher yield
EMR
1.37%
Safer dividend
EMR
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-48% upside
CAT vs EMR — FAQ
Is CAT or EMR a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). EMR offers the higher yield (1.37%), while EMR 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 EMR?
EMR has the higher forward dividend yield at 1.37%, versus 0.89% for CAT.
Is CAT or EMR safer?
EMR has the higher dividend-safety score (97/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or EMR better value right now?
As of Oct 19, 2026, CAT looks like the better value: its fair-value estimate is 48% below its share price (overvalued). For EMR, its fair-value estimate is 54% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.