CAT vs GD: Which Is the Better Dividend Stock?
As of Oct 25, 2026, CAT and GD are closely matched. GD offers the higher yield at 1.82%, GD has the higher dividend-safety score, and GD looks like the better value (its fair-value estimate is 18% below its share price).
Key facts: CAT vs GD
Data as of · Source: SmarterDividends data
- As of Oct 25, 2026, General Dynamics Corporation (GD) has the higher forward dividend yield at 1.82%, versus 0.95% for Caterpillar Inc. (CAT).
- As of Oct 25, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and GD's A (99/100).
- By SmarterDividends' count as of Oct 25, 2026, CAT has raised its dividend for 32 consecutive years and GD for 34.
- As of Oct 25, 2026, CAT pays out 26% of its earnings as dividends and GD pays out 38%.
- As of Oct 25, 2026, CAT's fair-value estimate is 45% below its share price and GD's fair-value estimate is 18% below its share price, so GD looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs GD: Dividend Yield, Safety & Value Compared," updated Oct 25, 2026, https://smarterdividends.com/compare/cat-vs-gd
| Metric | CAT | GD |
|---|---|---|
| Forward yield | 0.95% | 1.82% |
| Annual dividend | $6.52 | $6.36 |
| Payout ratio | 26% | 38% |
| Years of growth | 32 yr | 34 yr |
| 5-yr dividend growth | 7.2% | 6.5% |
| 5-yr total return | 255% | 85% |
| Dividend safety score | 92 (A) | 99 (A) |
| Fair value estimate | $377.48 | $285.90 |
| Upside to fair value | -45% | -18% |
| Frequency | quarterly | quarterly |
| Market cap | $315.8B | $94.5B |
| P/E ratio | 29.6 | 21.3 |
Higher yield
GD
1.82%
Safer dividend
GD
Grade A
Faster growth
CAT
7.2%
Better value
GD
-18% upside
CAT vs GD — FAQ
Is CAT or GD a better dividend stock?
CAT and GD are closely matched. GD has the higher yield; GD scores better on safety.
Which has a higher dividend yield, CAT or GD?
GD has the higher forward dividend yield at 1.82%, versus 0.95% for CAT.
Is CAT or GD safer?
GD has the higher dividend-safety score (99/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or GD better value right now?
As of Oct 25, 2026, GD looks like the better value: its fair-value estimate is 18% below its share price (overvalued). For CAT, 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.