SmarterDividends

CAT vs SB: Which Is the Better Dividend Stock?

As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. SB offers the higher yield at 3.80%, CAT has the higher dividend-safety score, and SB trades at the larger discount to fair value (-40%).

MetricCATSB
Forward yield0.61%3.80%
Annual dividend$6.52$0.24
Payout ratio30%44%
Years of growth32 yr0 yr
5-yr dividend growth7.2%
5-yr total return382%91%
Dividend safety score89 (A)66 (B)
Fair value estimate$485.01$3.86
Upside to fair value-51%-40%
Frequencyquarterlyquarterly
Market cap$490.5B$642.5M
P/E ratio52.914.0

Higher yield

SB

3.80%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

SB

-40% upside

CAT vs SB — FAQ

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