CAT vs HON: Which Is the Better Dividend Stock?
As of Nov 5, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. HON offers the higher yield at 1.23%, HON has the higher dividend-safety score, and HON looks like the better value (its fair-value estimate is 54% above its share price).
Key facts: CAT vs HON
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Honeywell International Inc. (HON) has the higher forward dividend yield at 1.23%, versus 1.10% for Caterpillar Inc. (CAT).
- As of Nov 5, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and HON's A (96/100).
- By SmarterDividends' count as of Nov 5, 2026, CAT has raised its dividend for 32 consecutive years and HON for 15.
- As of Nov 5, 2026, CAT pays out 24% of its earnings as dividends and HON pays out 39%.
- As of Nov 5, 2026, CAT's fair-value estimate is 30% below its share price and HON's fair-value estimate is 54% above its share price, so HON looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs HON: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cat-vs-hon
| Metric | CAT | HON |
|---|---|---|
| Forward yield | 1.10% | 1.23% |
| Annual dividend | $6.52 | $2.80 |
| Payout ratio | 24% | 39% |
| Years of growth | 32 yr | 15 yr |
| 5-yr dividend growth | 7.2% | 5.1% |
| 5-yr total return | 222% | 9% |
| Dividend safety score | 91 (A) | 96 (A) |
| Fair value estimate | $400.01 | $339.54 |
| Upside to fair value | -30% | +54% |
| Frequency | quarterly | quarterly |
| Market cap | $260.3B | $69.9B |
| P/E ratio | 22.3 | 10.9 |
Higher yield
HON
1.23%
Safer dividend
HON
Grade A
Faster growth
CAT
7.2%
Better value
HON
+54% upside
CAT vs HON — FAQ
Is CAT or HON a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). HON offers the higher yield (1.23%), while HON 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 HON?
HON has the higher forward dividend yield at 1.23%, versus 1.10% for CAT.
Is CAT or HON safer?
HON has the higher dividend-safety score (96/100 vs 91/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or HON better value right now?
As of Nov 5, 2026, HON looks like the better value: its fair-value estimate is 54% above its share price (undervalued). For CAT, its fair-value estimate is 30% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.