CAT vs LUV: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. LUV offers the higher yield at 1.75%, CAT has the higher dividend-safety score, and LUV trades at the larger discount to fair value (+86%).
| Metric | CAT | LUV |
|---|---|---|
| Forward yield | 0.80% | 1.75% |
| Annual dividend | $6.52 | $0.72 |
| Payout ratio | 26% | 45% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | 0.0% |
| 5-yr total return | 297% | -13% |
| Dividend safety score | 92 (A) | 92 (A) |
| Fair value estimate | $492.78 | $76.20 |
| Upside to fair value | -39% | +86% |
| Frequency | quarterly | quarterly |
| Market cap | $370.2B | $20.3B |
| P/E ratio | 35.0 | 26.0 |
Higher yield
LUV
1.75%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
LUV
+86% upside
CAT vs LUV — FAQ
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