CAT vs KMT: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT and KMT are closely matched. KMT offers the higher yield at 2.60%, KMT has the higher dividend-safety score, and KMT looks like the better value (its fair-value estimate is 20% below its share price).
Key facts: CAT vs KMT
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Kennametal Inc. (KMT) has the higher forward dividend yield at 2.60%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and KMT's A (98/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and KMT for 0.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and KMT pays out 18%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and KMT's fair-value estimate is 20% below its share price, so KMT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs KMT: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-kmt
| Metric | CAT | KMT |
|---|---|---|
| Forward yield | 0.89% | 2.60% |
| 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 | 278% | -13% |
| Dividend safety score | 92 (A) | 98 (A) |
| Fair value estimate | $377.48 | $24.60 |
| Upside to fair value | -48% | -20% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $2.4B |
| P/E ratio | 31.5 | 7.0 |
Higher yield
KMT
2.60%
Safer dividend
KMT
Grade A
Faster growth
CAT
7.2%
Better value
KMT
-20% upside
CAT vs KMT — FAQ
Is CAT or KMT a better dividend stock?
CAT and KMT are closely matched. KMT has the higher yield; KMT scores better on safety.
Which has a higher dividend yield, CAT or KMT?
KMT has the higher forward dividend yield at 2.60%, versus 0.89% for CAT.
Is CAT or KMT safer?
KMT has the higher dividend-safety score (98/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or KMT better value right now?
As of Oct 18, 2026, KMT looks like the better value: its fair-value estimate is 20% below its share price (overvalued). For CAT, its fair-value estimate is 48% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.