CAT vs HON: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. HON offers the higher yield at 1.36%, HON has the higher dividend-safety score, and HON trades at the larger discount to fair value (+4%).
| Metric | CAT | HON |
|---|---|---|
| Forward yield | 0.81% | 1.36% |
| Annual dividend | $6.52 | $2.80 |
| Payout ratio | 26% | 36% |
| Years of growth | 32 yr | 15 yr |
| 5-yr dividend growth | 7.2% | 5.1% |
| 5-yr total return | 297% | -4% |
| Dividend safety score | 92 (A) | 95 (A) |
| Fair value estimate | $492.78 | $213.93 |
| Upside to fair value | -39% | +4% |
| Frequency | quarterly | monthly |
| Market cap | $371.9B | $65.4B |
| P/E ratio | 34.8 | 7.9 |
Higher yield
HON
1.36%
Safer dividend
HON
Grade A
Faster growth
CAT
7.2%
Better value
HON
+4% upside
CAT vs HON — FAQ
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