CAT vs OTTR: 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. OTTR offers the higher yield at 2.50%, OTTR has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 48% below its share price).
Key facts: CAT vs OTTR
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Otter Tail Corporation (OTTR) has the higher forward dividend yield at 2.50%, versus 0.89% for Caterpillar Inc. (CAT).
- As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and OTTR's A (93/100).
- By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and OTTR for 12.
- As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and OTTR pays out 48%.
- As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and OTTR's fair-value estimate is 60% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs OTTR: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-ottr
| Metric | CAT | OTTR |
|---|---|---|
| Forward yield | 0.89% | 2.50% |
| Annual dividend | $6.52 | $2.26 |
| Payout ratio | 26% | 48% |
| Years of growth | 32 yr | 12 yr |
| 5-yr dividend growth | 7.2% | 7.2% |
| 5-yr total return | 278% | 38% |
| Dividend safety score | 92 (A) | 93 (A) |
| Fair value estimate | $377.48 | $36.24 |
| Upside to fair value | -48% | -60% |
| Frequency | quarterly | quarterly |
| Market cap | $335.9B | $3.8B |
| P/E ratio | 31.5 | 19.5 |
Higher yield
OTTR
2.50%
Safer dividend
OTTR
Grade A
Faster growth
OTTR
7.2%
Better value
CAT
-48% upside
CAT vs OTTR — FAQ
Is CAT or OTTR a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 3). OTTR offers the higher yield (2.50%), while OTTR 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 OTTR?
OTTR has the higher forward dividend yield at 2.50%, versus 0.89% for CAT.
Is CAT or OTTR safer?
OTTR has the higher dividend-safety score (93/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or OTTR better value right now?
As of Oct 18, 2026, CAT looks like the better value: its fair-value estimate is 48% below its share price (overvalued). For OTTR, its fair-value estimate is 60% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.