CAT vs KMT: Which Is the Better Dividend Stock?
As of August 2026, CAT and KMT are closely matched. KMT offers the higher yield at 2.41%, KMT has the higher dividend-safety score, and KMT trades at the larger discount to fair value (+3%).
| Metric | CAT | KMT |
|---|---|---|
| Forward yield | 0.77% | 2.41% |
| Annual dividend | $6.52 | $0.80 |
| Payout ratio | 26% | 18% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | 0.0% |
| 5-yr total return | 299% | -11% |
| Dividend safety score | 92 (A) | 98 (A) |
| Fair value estimate | $523.22 | $34.02 |
| Upside to fair value | -38% | +3% |
| Frequency | quarterly | quarterly |
| Market cap | $387.1B | $2.5B |
| P/E ratio | 36.2 | 7.5 |
Higher yield
KMT
2.41%
Safer dividend
KMT
Grade A
Faster growth
CAT
7.2%
Better value
KMT
+3% upside
CAT vs KMT — FAQ
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