SmarterDividends

CAT vs SFL: Which Is the Better Dividend Stock?

As of Oct 27, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. SFL offers the higher yield at 6.89%, CAT has the higher dividend-safety score, and SFL looks like the better value (its fair-value estimate is 50% above its share price).

Key facts: CAT vs SFL

Data as of · Source: SmarterDividends data

  • As of Oct 27, 2026, SFL Corporation Ltd. (SFL) has the higher forward dividend yield at 6.89%, versus 0.94% for Caterpillar Inc. (CAT).
  • As of Oct 27, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and SFL's D (47/100).
  • By SmarterDividends' count as of Oct 27, 2026, CAT has raised its dividend for 32 consecutive years and SFL for 4.
  • As of Oct 27, 2026, CAT pays out 26% of its earnings as dividends and SFL pays out 173%.
  • As of Oct 27, 2026, CAT's fair-value estimate is 45% below its share price and SFL's fair-value estimate is 50% above its share price, so SFL looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "CAT vs SFL: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/cat-vs-sfl

MetricCATSFL
Forward yield0.94%6.89%
Annual dividend$6.52$0.88
Payout ratio26%173%
Years of growth32 yr4 yr
5-yr dividend growth7.2%1.6%
5-yr total return255%52%
Dividend safety score92 (A)47 (D)
Fair value estimate$377.48$19.16
Upside to fair value-45%+50%
Frequencyquarterlyquarterly
Market cap$318.2B$1.8B
P/E ratio29.826.6

Higher yield

SFL

6.89%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

SFL

+50% upside

CAT vs SFL — FAQ

Is CAT or SFL a better dividend stock?

On the data, CAT wins more head-to-head categories (6 vs 2). SFL offers the higher yield (6.89%), while CAT 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 SFL?

SFL has the higher forward dividend yield at 6.89%, versus 0.94% for CAT.

Is CAT or SFL safer?

CAT has the higher dividend-safety score (92/100 vs 47/100), reflecting stronger payout coverage and dividend-growth history.

Is CAT or SFL better value right now?

As of Oct 27, 2026, SFL looks like the better value: its fair-value estimate is 50% above its share price (undervalued). For CAT, its fair-value estimate is 45% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.