CAT vs LSTR: Which Is the Better Dividend Stock?
As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. LSTR offers the higher yield at 1.03%, CAT has the higher dividend-safety score, and LSTR looks like the better value (its fair-value estimate is 9% above its share price).
Key facts: CAT vs LSTR
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Landstar System, Inc. (LSTR) has the higher forward dividend yield at 1.03%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and LSTR's A (90/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and LSTR for 11.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and LSTR pays out 41%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and LSTR's fair-value estimate is 9% above its share price, so LSTR looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs LSTR: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-lstr
| Metric | CAT | LSTR |
|---|---|---|
| Forward yield | 0.89% | 1.03% |
| Annual dividend | $6.52 | $1.76 |
| Payout ratio | 26% | 41% |
| Years of growth | 32 yr | 11 yr |
| 5-yr dividend growth | 7.2% | 14.6% |
| 5-yr total return | 278% | 2% |
| Dividend safety score | 92 (A) | 90 (A) |
| Fair value estimate | $377.48 | $187.85 |
| Upside to fair value | -48% | +9% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $5.8B |
| P/E ratio | 31.5 | 44.5 |
Higher yield
LSTR
1.03%
Safer dividend
CAT
Grade A
Faster growth
LSTR
14.6%
Better value
LSTR
+9% upside
CAT vs LSTR — FAQ
Is CAT or LSTR a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). LSTR offers the higher yield (1.03%), 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 LSTR?
LSTR has the higher forward dividend yield at 1.03%, versus 0.89% for CAT.
Is CAT or LSTR safer?
CAT has the higher dividend-safety score (92/100 vs 90/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or LSTR better value right now?
As of Oct 18, 2026, LSTR looks like the better value: its fair-value estimate is 9% 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.