CAT vs KAI: Which Is the Better Dividend Stock?
As of Oct 15, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. CAT offers the higher yield at 0.84%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 50% below its share price).
Key facts: CAT vs KAI
Data as of · Source: SmarterDividends data
- As of Oct 15, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 0.84%, versus 0.55% for Kadant Inc. (KAI).
- As of Oct 15, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and KAI's A (89/100).
- By SmarterDividends' count as of Oct 15, 2026, CAT has raised its dividend for 32 consecutive years and KAI for 12.
- As of Oct 15, 2026, CAT pays out 26% of its earnings as dividends and KAI pays out 15%.
- As of Oct 15, 2026, CAT's fair-value estimate is 50% below its share price and KAI's fair-value estimate is 60% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs KAI: Dividend Yield, Safety & Value Compared," updated Oct 15, 2026, https://smarterdividends.com/compare/cat-vs-kai
| Metric | CAT | KAI |
|---|---|---|
| Forward yield | 0.84% | 0.55% |
| Annual dividend | $6.16 | $1.40 |
| Payout ratio | 26% | 15% |
| Years of growth | 32 yr | 12 yr |
| 5-yr dividend growth | 7.2% | 7.1% |
| 5-yr total return | 292% | 17% |
| Dividend safety score | 92 (A) | 89 (A) |
| Fair value estimate | $377.48 | $104.46 |
| Upside to fair value | -50% | -60% |
| Frequency | quarterly | quarterly |
| Market cap | $344.3B | $3.1B |
| P/E ratio | 33.3 | 28.1 |
Higher yield
CAT
0.84%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-50% upside
CAT vs KAI — FAQ
Is CAT or KAI a better dividend stock?
On the data, CAT wins more head-to-head categories (7 vs 1). CAT offers the higher yield (0.84%), 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 KAI?
CAT has the higher forward dividend yield at 0.84%, versus 0.55% for KAI.
Is CAT or KAI safer?
CAT has the higher dividend-safety score (92/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or KAI better value right now?
As of Oct 15, 2026, CAT looks like the better value: its fair-value estimate is 50% below its share price (overvalued). For KAI, its fair-value estimate is 60% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.