CAT vs HII: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. HII offers the higher yield at 2.03%, CAT has the higher dividend-safety score, and HII looks like the better value (its fair-value estimate is 13% above its share price).
Key facts: CAT vs HII
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Huntington Ingalls Industries, Inc. (HII) has the higher forward dividend yield at 2.03%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and HII's A (91/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and HII for 12.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and HII pays out 33%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and HII's fair-value estimate is 13% above its share price, so HII looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs HII: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-hii
| Metric | CAT | HII |
|---|---|---|
| Forward yield | 0.89% | 2.03% |
| Annual dividend | $6.52 | $5.52 |
| Payout ratio | 26% | 33% |
| Years of growth | 32 yr | 12 yr |
| 5-yr dividend growth | 7.2% | 5.1% |
| 5-yr total return | 278% | 53% |
| Dividend safety score | 92 (A) | 91 (A) |
| Fair value estimate | $377.48 | $306.91 |
| Upside to fair value | -48% | +13% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $10.7B |
| P/E ratio | 31.5 | 16.2 |
Higher yield
HII
2.03%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
HII
+13% upside
CAT vs HII — FAQ
Is CAT or HII a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). HII offers the higher yield (2.03%), 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 HII?
HII has the higher forward dividend yield at 2.03%, versus 0.89% for CAT.
Is CAT or HII safer?
CAT has the higher dividend-safety score (92/100 vs 91/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or HII better value right now?
As of Oct 18, 2026, HII looks like the better value: its fair-value estimate is 13% above its share price (fairly valued). 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.