CAT vs FSS: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CAT offers the higher yield at 0.89%, CAT has the higher dividend-safety score, and FSS looks like the better value (its fair-value estimate is 26% below its share price).
Key facts: CAT vs FSS
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 0.89%, versus 0.53% for Federal Signal Corporation (FSS).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and FSS's A (84/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and FSS for 3.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and FSS pays out 13%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and FSS's fair-value estimate is 26% below its share price, so FSS looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs FSS: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-fss
| Metric | CAT | FSS |
|---|---|---|
| Forward yield | 0.89% | 0.53% |
| Annual dividend | $6.52 | $0.60 |
| Payout ratio | 26% | 13% |
| Years of growth | 32 yr | 3 yr |
| 5-yr dividend growth | 7.2% | 11.8% |
| 5-yr total return | 278% | 165% |
| Dividend safety score | 92 (A) | 84 (A) |
| Fair value estimate | $377.48 | $82.84 |
| Upside to fair value | -48% | -26% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $6.9B |
| P/E ratio | 31.5 | 24.2 |
Higher yield
CAT
0.89%
Safer dividend
CAT
Grade A
Faster growth
FSS
11.8%
Better value
FSS
-26% upside
CAT vs FSS — FAQ
Is CAT or FSS a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). 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 FSS?
CAT has the higher forward dividend yield at 0.89%, versus 0.53% for FSS.
Is CAT or FSS safer?
CAT has the higher dividend-safety score (92/100 vs 84/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or FSS better value right now?
As of Oct 18, 2026, FSS looks like the better value: its fair-value estimate is 26% below its share price (overvalued). For CAT, its fair-value estimate is 48% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.