CAT vs LII: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT and LII are closely matched. LII offers the higher yield at 1.52%, CAT has the higher dividend-safety score, and LII looks like the better value (its fair-value estimate is 6% above its share price).
Key facts: CAT vs LII
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Lennox International Inc. (LII) has the higher forward dividend yield at 1.52%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and LII's A (91/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and LII for 16.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and LII pays out 23%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and LII's fair-value estimate is 6% above its share price, so LII looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs LII: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-lii
| Metric | CAT | LII |
|---|---|---|
| Forward yield | 0.89% | 1.52% |
| Annual dividend | $6.52 | $5.44 |
| Payout ratio | 26% | 23% |
| Years of growth | 32 yr | 16 yr |
| 5-yr dividend growth | 7.2% | 10.4% |
| 5-yr total return | 278% | 16% |
| Dividend safety score | 92 (A) | 91 (A) |
| Fair value estimate | $377.48 | $380.03 |
| Upside to fair value | -48% | +6% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $12.4B |
| P/E ratio | 31.5 | 15.8 |
Higher yield
LII
1.52%
Safer dividend
CAT
Grade A
Faster growth
LII
10.4%
Better value
LII
+6% upside
CAT vs LII — FAQ
Is CAT or LII a better dividend stock?
CAT and LII are closely matched. LII has the higher yield; CAT scores better on safety.
Which has a higher dividend yield, CAT or LII?
LII has the higher forward dividend yield at 1.52%, versus 0.89% for CAT.
Is CAT or LII safer?
CAT has the higher dividend-safety score (92/100 vs 91/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or LII better value right now?
As of Oct 18, 2026, LII looks like the better value: its fair-value estimate is 6% above its share price (fairly valued). 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.