CAT vs HRI: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 7 head-to-head metrics. HRI offers the higher yield at 2.30%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 48% below its share price).
Key facts: CAT vs HRI
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Herc Holdings Inc. (HRI) has the higher forward dividend yield at 2.30%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and HRI's C (64/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and HRI for 4.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and HRI pays out 183%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and HRI's fair-value estimate is 65% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs HRI: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-hri
| Metric | CAT | HRI |
|---|---|---|
| Forward yield | 0.89% | 2.30% |
| Annual dividend | $6.52 | $2.80 |
| Payout ratio | 26% | 183% |
| Years of growth | 32 yr | 4 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 278% | -29% |
| Dividend safety score | 92 (A) | 64 (C) |
| Fair value estimate | $377.48 | $42.59 |
| Upside to fair value | -48% | -65% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $4.1B |
| P/E ratio | 31.5 | 79.5 |
Higher yield
HRI
2.30%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-48% upside
CAT vs HRI — FAQ
Is CAT or HRI a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 1). HRI offers the higher yield (2.30%), 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 HRI?
HRI has the higher forward dividend yield at 2.30%, versus 0.89% for CAT.
Is CAT or HRI safer?
CAT has the higher dividend-safety score (92/100 vs 64/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or HRI better value right now?
As of Oct 18, 2026, CAT looks like the better value: its fair-value estimate is 48% below its share price (overvalued). For HRI, its fair-value estimate is 65% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.