CAT vs ESP: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. ESP offers the higher yield at 1.57%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-40%).
| Metric | CAT | ESP |
|---|---|---|
| Forward yield | 0.83% | 1.57% |
| Annual dividend | $6.52 | $1.00 |
| Payout ratio | 26% | 26% |
| Years of growth | 32 yr | 2 yr |
| 5-yr dividend growth | 7.2% | 0.0% |
| 5-yr total return | 326% | 338% |
| Dividend safety score | 92 (A) | 65 (C) |
| Fair value estimate | $493.16 | $36.60 |
| Upside to fair value | -40% | -43% |
| Frequency | quarterly | quarterly |
| Market cap | $359.8B | — |
| P/E ratio | 33.8 | 16.8 |
Higher yield
ESP
1.57%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-40% upside
CAT vs ESP — FAQ
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