CAT vs ETN: Which Is the Better Dividend Stock?
As of Nov 5, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. ETN offers the higher yield at 1.25%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 30% below its share price).
Key facts: CAT vs ETN
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Eaton Corporation plc (ETN) has the higher forward dividend yield at 1.25%, versus 1.10% for Caterpillar Inc. (CAT).
- As of Nov 5, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and ETN's B (72/100).
- By SmarterDividends' count as of Nov 5, 2026, CAT has raised its dividend for 32 consecutive years and ETN for 5.
- As of Nov 5, 2026, CAT pays out 24% of its earnings as dividends and ETN pays out 43%.
- As of Nov 5, 2026, CAT's fair-value estimate is 30% below its share price and ETN's fair-value estimate is 45% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs ETN: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cat-vs-etn
| Metric | CAT | ETN |
|---|---|---|
| Forward yield | 1.10% | 1.25% |
| Annual dividend | $6.52 | $4.40 |
| Payout ratio | 24% | 43% |
| Years of growth | 32 yr | 5 yr |
| 5-yr dividend growth | 7.2% | 12.9% |
| 5-yr total return | 222% | 128% |
| Dividend safety score | 91 (A) | 72 (B) |
| Fair value estimate | $400.01 | $184.74 |
| Upside to fair value | -30% | -45% |
| Frequency | quarterly | quarterly |
| Market cap | $260.3B | $130.4B |
| P/E ratio | 22.3 | 33.5 |
Higher yield
ETN
1.25%
Safer dividend
CAT
Grade A
Faster growth
ETN
12.9%
Better value
CAT
-30% upside
CAT vs ETN — FAQ
Is CAT or ETN a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). ETN offers the higher yield (1.25%), 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 ETN?
ETN has the higher forward dividend yield at 1.25%, versus 1.10% for CAT.
Is CAT or ETN safer?
CAT has the higher dividend-safety score (91/100 vs 72/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or ETN better value right now?
As of Nov 5, 2026, CAT looks like the better value: its fair-value estimate is 30% below its share price (overvalued). For ETN, its fair-value estimate is 45% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.