SmarterDividends

CAT vs FERG: Which Is the Better Dividend Stock?

As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. FERG offers the higher yield at 1.53%, CAT has the higher dividend-safety score, and FERG trades at the larger discount to fair value (-16%).

MetricCATFERG
Forward yield0.74%1.53%
Annual dividend$6.52$3.56
Payout ratio30%33%
Years of growth32 yr2 yr
5-yr dividend growth7.2%-16.8%
5-yr total return317%61%
Dividend safety score89 (A)60 (C)
Fair value estimate$485.27$194.95
Upside to fair value-45%-16%
Frequencyquarterlyquarterly
Market cap$398.1B$44.4B
P/E ratio43.922.8

Higher yield

FERG

1.53%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

FERG

-16% upside

CAT vs FERG — FAQ

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