CAT vs LMT: Which Is the Better Dividend Stock?
As of Nov 2, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. LMT offers the higher yield at 2.26%, CAT has the higher dividend-safety score, and LMT looks like the better value (its fair-value estimate is 11% below its share price).
Key facts: CAT vs LMT
Data as of · Source: SmarterDividends data
- As of Nov 2, 2026, Lockheed Martin Corporation (LMT) has the higher forward dividend yield at 2.26%, versus 1.05% for Caterpillar Inc. (CAT).
- As of Nov 2, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and LMT's A (89/100).
- By SmarterDividends' count as of Nov 2, 2026, CAT has raised its dividend for 32 consecutive years and LMT for 23.
- As of Nov 2, 2026, CAT pays out 26% of its earnings as dividends and LMT pays out 49%.
- As of Nov 2, 2026, CAT's fair-value estimate is 36% below its share price and LMT's fair-value estimate is 11% below its share price, so LMT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs LMT: Dividend Yield, Safety & Value Compared," updated Nov 2, 2026, https://smarterdividends.com/compare/cat-vs-lmt
| Metric | CAT | LMT |
|---|---|---|
| Forward yield | 1.05% | 2.26% |
| Annual dividend | $6.52 | $14.40 |
| Payout ratio | 26% | 49% |
| Years of growth | 32 yr | 23 yr |
| 5-yr dividend growth | 7.2% | 6.4% |
| 5-yr total return | 222% | 91% |
| Dividend safety score | 91 (A) | 89 (A) |
| Fair value estimate | $400.01 | $569.70 |
| Upside to fair value | -36% | -11% |
| Frequency | quarterly | quarterly |
| Market cap | $286.3B | $147.1B |
| P/E ratio | 24.4 | 22.6 |
Higher yield
LMT
2.26%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
LMT
-11% upside
CAT vs LMT — FAQ
Is CAT or LMT a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). LMT offers the higher yield (2.26%), 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 LMT?
LMT has the higher forward dividend yield at 2.26%, versus 1.05% for CAT.
Is CAT or LMT safer?
CAT has the higher dividend-safety score (91/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or LMT better value right now?
As of Nov 2, 2026, LMT looks like the better value: its fair-value estimate is 11% below its share price (fairly valued). For CAT, its fair-value estimate is 36% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.