SmarterDividends

CAT vs PWR: Which Is the Better Dividend Stock?

As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CAT offers the higher yield at 0.74%, CAT has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-45%).

MetricCATPWR
Forward yield0.74%0.07%
Annual dividend$6.52$0.44
Payout ratio30%6%
Years of growth32 yr7 yr
5-yr dividend growth7.2%13.8%
5-yr total return317%516%
Dividend safety score89 (A)82 (A)
Fair value estimate$485.27$217.99
Upside to fair value-45%-65%
Frequencyquarterlyquarterly
Market cap$398.1B$94.9B
P/E ratio43.986.8

Higher yield

CAT

0.74%

Safer dividend

CAT

Grade A

Faster growth

PWR

13.8%

Better value

CAT

-45% upside

CAT vs PWR — FAQ

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