SmarterDividends

CAT vs GATX: 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. GATX offers the higher yield at 1.60%, CAT has the higher dividend-safety score, and GATX looks like the better value (its fair-value estimate is 10% below its share price).

Key facts: CAT vs GATX

Data as of · Source: SmarterDividends data

  • As of Oct 18, 2026, GATX Corporation (GATX) has the higher forward dividend yield at 1.60%, versus 0.89% for Caterpillar Inc. (CAT).
  • As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and GATX's A (86/100).
  • By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and GATX for 15.
  • As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and GATX pays out 25%.
  • As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and GATX's fair-value estimate is 10% below its share price, so GATX looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "CAT vs GATX: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-gatx

MetricCATGATX
Forward yield0.89%1.60%
Annual dividend$6.52$2.64
Payout ratio26%25%
Years of growth32 yr15 yr
5-yr dividend growth7.2%4.9%
5-yr total return278%68%
Dividend safety score92 (A)86 (A)
Fair value estimate$377.48$148.49
Upside to fair value-48%-10%
Frequencyquarterlyquarterly
Market cap$335.9B$5.8B
P/E ratio31.516.4

Higher yield

GATX

1.60%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

GATX

-10% upside

CAT vs GATX — FAQ

Is CAT or GATX a better dividend stock?

On the data, CAT wins more head-to-head categories (5 vs 3). GATX offers the higher yield (1.60%), 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 GATX?

GATX has the higher forward dividend yield at 1.60%, versus 0.89% for CAT.

Is CAT or GATX safer?

CAT has the higher dividend-safety score (92/100 vs 86/100), reflecting stronger payout coverage and dividend-growth history.

Is CAT or GATX better value right now?

As of Oct 18, 2026, GATX looks like the better value: its fair-value estimate is 10% below its share price (fairly valued). For CAT, its fair-value estimate is 48% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.