SmarterDividends

CAT vs SHIP: Which Is the Better Dividend Stock?

As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. SHIP offers the higher yield at 5.71%, CAT has the higher dividend-safety score, and SHIP trades at the larger discount to fair value (-3%).

MetricCATSHIP
Forward yield0.74%5.71%
Annual dividend$6.52$0.80
Payout ratio30%24%
Years of growth32 yr0 yr
5-yr dividend growth7.2%
5-yr total return317%12%
Dividend safety score89 (A)51 (C)
Fair value estimate$485.27$13.64
Upside to fair value-45%-3%
Frequencyquarterlyquarterly
Market cap$398.1B$312.2M
P/E ratio43.97.7

Higher yield

SHIP

5.71%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

SHIP

-3% upside

CAT vs SHIP — FAQ

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