CAT vs GD: Which Is the Better Dividend Stock?
As of August 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. GD offers the higher yield at 1.66%, GD has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-1%).
| Metric | CAT | GD |
|---|---|---|
| Forward yield | 0.79% | 1.66% |
| 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 | 331% | 96% |
| Dividend safety score | 92 (A) | 98 (A) |
| Fair value estimate | $818.06 | $268.62 |
| Upside to fair value | -1% | -30% |
| Frequency | quarterly | quarterly |
| Market cap | $372.8B | $103.8B |
| P/E ratio | 35.7 | 23.4 |
Higher yield
GD
1.66%
Safer dividend
GD
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-1% upside
CAT vs GD — FAQ
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