CAT vs ESAB: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 6 head-to-head metrics. CAT offers the higher yield at 0.89%, CAT has the higher dividend-safety score, and ESAB looks like the better value (its fair-value estimate is 6% above its share price).
Key facts: CAT vs ESAB
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 0.89%, versus 0.73% for ESAB Corporation (ESAB).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and ESAB's B (71/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and ESAB for 3.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and ESAB pays out 13%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and ESAB's fair-value estimate is 6% above its share price, so ESAB looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs ESAB: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-esab
| Metric | CAT | ESAB |
|---|---|---|
| Forward yield | 0.89% | 0.73% |
| Annual dividend | $6.52 | $0.48 |
| Payout ratio | 26% | 13% |
| Years of growth | 32 yr | 3 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 278% | — |
| Dividend safety score | 92 (A) | 71 (B) |
| Fair value estimate | $377.48 | $69.12 |
| Upside to fair value | -48% | +6% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $4.1B |
| P/E ratio | 31.5 | 20.4 |
Higher yield
CAT
0.89%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
ESAB
+6% upside
CAT vs ESAB — FAQ
Is CAT or ESAB a better dividend stock?
On the data, CAT wins more head-to-head categories (4 vs 2). CAT offers the higher yield (0.89%), 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 ESAB?
CAT has the higher forward dividend yield at 0.89%, versus 0.73% for ESAB.
Is CAT or ESAB safer?
CAT has the higher dividend-safety score (92/100 vs 71/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or ESAB better value right now?
As of Oct 18, 2026, ESAB looks like the better value: its fair-value estimate is 6% above its share price (fairly valued). 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.