SmarterDividends

CAT vs IR: Which Is the Better Dividend Stock?

As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. CAT offers the higher yield at 0.80%, CAT has the higher dividend-safety score, and IR trades at the larger discount to fair value (-28%).

MetricCATIR
Forward yield0.80%0.10%
Annual dividend$6.52$0.08
Payout ratio26%3%
Years of growth32 yr0 yr
5-yr dividend growth7.2%
5-yr total return297%34%
Dividend safety score92 (A)65 (C)
Fair value estimate$492.78$52.04
Upside to fair value-39%-28%
Frequencyquarterlyquarterly
Market cap$366.0B$29.2B
P/E ratio34.331.1

Higher yield

CAT

0.80%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

IR

-28% upside

CAT vs IR — FAQ

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