CAT vs NSC: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. NSC offers the higher yield at 1.72%, CAT has the higher dividend-safety score, and NSC trades at the larger discount to fair value (-6%).
| Metric | CAT | NSC |
|---|---|---|
| Forward yield | 0.81% | 1.72% |
| Annual dividend | $6.52 | $5.40 |
| Payout ratio | 26% | 46% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | 7.5% |
| 5-yr total return | 297% | 7% |
| Dividend safety score | 92 (A) | 88 (A) |
| Fair value estimate | $492.78 | $294.63 |
| Upside to fair value | -39% | -6% |
| Frequency | quarterly | quarterly |
| Market cap | $371.9B | $70.6B |
| P/E ratio | 34.8 | 26.8 |
Higher yield
NSC
1.72%
Safer dividend
CAT
Grade A
Faster growth
NSC
7.5%
Better value
NSC
-6% upside
CAT vs NSC — FAQ
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