CAT vs ITW: 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. ITW offers the higher yield at 2.55%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-39%).
| Metric | CAT | ITW |
|---|---|---|
| Forward yield | 0.81% | 2.55% |
| Annual dividend | $6.52 | $6.88 |
| Payout ratio | 26% | 58% |
| Years of growth | 32 yr | 38 yr |
| 5-yr dividend growth | 7.2% | 7.1% |
| 5-yr total return | 297% | 18% |
| Dividend safety score | 92 (A) | 85 (A) |
| Fair value estimate | $492.78 | $151.31 |
| Upside to fair value | -39% | -44% |
| Frequency | quarterly | quarterly |
| Market cap | $371.9B | $76.7B |
| P/E ratio | 34.8 | 24.4 |
Higher yield
ITW
2.55%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-39% upside
CAT vs ITW — FAQ
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