SmarterDividends

CAT vs HII: Which Is the Better Dividend Stock?

As of August 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. HII offers the higher yield at 1.90%, CAT has the higher dividend-safety score, and HII trades at the larger discount to fair value (+25%).

MetricCATHII
Forward yield0.80%1.90%
Annual dividend$6.52$5.52
Payout ratio26%33%
Years of growth32 yr12 yr
5-yr dividend growth7.2%5.1%
5-yr total return331%54%
Dividend safety score92 (A)90 (A)
Fair value estimate$818.06$372.82
Upside to fair value-1%+25%
Frequencyquarterlyquarterly
Market cap$377.8B$11.7B
P/E ratio35.017.3

Higher yield

HII

1.90%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

HII

+25% upside

CAT vs HII — FAQ

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