CAT vs SHIP: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. SHIP offers the higher yield at 7.68%, CAT has the higher dividend-safety score, and SHIP trades at the larger discount to fair value (+6%).
| Metric | CAT | SHIP |
|---|---|---|
| Forward yield | 0.81% | 7.68% |
| Annual dividend | $6.52 | $1.40 |
| Payout ratio | 26% | 20% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 326% | 27% |
| Dividend safety score | 92 (A) | 55 (C) |
| Fair value estimate | $487.98 | $20.00 |
| Upside to fair value | -40% | +6% |
| Frequency | quarterly | quarterly |
| Market cap | $376.3B | $398.9M |
| P/E ratio | 34.7 | 6.3 |
Higher yield
SHIP
7.68%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
SHIP
+6% upside
CAT vs SHIP — FAQ
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