CAT vs ITW: 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. ITW offers the higher yield at 2.34%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 30% below its share price).
Key facts: CAT vs ITW
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Illinois Tool Works Inc. (ITW) has the higher forward dividend yield at 2.34%, versus 1.10% for Caterpillar Inc. (CAT).
- As of Nov 5, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and ITW's A (88/100).
- By SmarterDividends' count as of Nov 5, 2026, CAT has raised its dividend for 32 consecutive years and ITW for 38.
- As of Nov 5, 2026, CAT pays out 24% of its earnings as dividends and ITW pays out 58%.
- As of Nov 5, 2026, CAT's fair-value estimate is 30% below its share price and ITW's fair-value estimate is 43% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs ITW: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cat-vs-itw
| Metric | CAT | ITW |
|---|---|---|
| Forward yield | 1.10% | 2.34% |
| Annual dividend | $6.52 | $6.88 |
| Payout ratio | 24% | 58% |
| Years of growth | 32 yr | 38 yr |
| 5-yr dividend growth | 7.2% | 7.1% |
| 5-yr total return | 222% | 20% |
| Dividend safety score | 91 (A) | 88 (A) |
| Fair value estimate | $400.01 | $167.20 |
| Upside to fair value | -30% | -43% |
| Frequency | quarterly | quarterly |
| Market cap | $260.3B | $82.9B |
| P/E ratio | 22.3 | 26.0 |
Higher yield
ITW
2.34%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-30% upside
CAT vs ITW — FAQ
Is CAT or ITW a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). ITW offers the higher yield (2.34%), 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 ITW?
ITW has the higher forward dividend yield at 2.34%, versus 1.10% for CAT.
Is CAT or ITW safer?
CAT has the higher dividend-safety score (91/100 vs 88/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or ITW better value right now?
As of Nov 5, 2026, CAT looks like the better value: its fair-value estimate is 30% below its share price (overvalued). For ITW, its fair-value estimate is 43% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.