CAT vs LHX: 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. LHX offers the higher yield at 2.02%, LHX has the higher dividend-safety score, and LHX trades at the larger discount to fair value (+28%).
| Metric | CAT | LHX |
|---|---|---|
| Forward yield | 0.81% | 2.02% |
| Annual dividend | $6.52 | $5.00 |
| Payout ratio | 26% | 49% |
| Years of growth | 32 yr | 24 yr |
| 5-yr dividend growth | 7.2% | 7.1% |
| 5-yr total return | 297% | 7% |
| Dividend safety score | 92 (A) | 94 (A) |
| Fair value estimate | $492.78 | $317.40 |
| Upside to fair value | -39% | +28% |
| Frequency | quarterly | quarterly |
| Market cap | $371.9B | $46.0B |
| P/E ratio | 34.8 | 25.0 |
Higher yield
LHX
2.02%
Safer dividend
LHX
Grade A
Faster growth
CAT
7.2%
Better value
LHX
+28% upside
CAT vs LHX — FAQ
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