CAT vs MSM: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. MSM offers the higher yield at 2.85%, CAT has the higher dividend-safety score, and MSM trades at the larger discount to fair value (+19%).
| Metric | CAT | MSM |
|---|---|---|
| Forward yield | 0.81% | 2.85% |
| Annual dividend | $6.52 | $3.48 |
| Payout ratio | 26% | 84% |
| Years of growth | 32 yr | 4 yr |
| 5-yr dividend growth | 7.2% | 2.7% |
| 5-yr total return | 297% | 45% |
| Dividend safety score | 92 (A) | 87 (A) |
| Fair value estimate | $492.78 | $145.73 |
| Upside to fair value | -39% | +19% |
| Frequency | quarterly | quarterly |
| Market cap | $375.3B | $6.8B |
| P/E ratio | 35.2 | 29.4 |
Higher yield
MSM
2.85%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
MSM
+19% upside
CAT vs MSM — FAQ
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