CAT vs TDG: Which Is the Better Dividend Stock?
As of July 2026, TDG (TransDigm Group Incorporated) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. TDG offers the higher yield at 7.47%, CAT has the higher dividend-safety score, and TDG trades at the larger discount to fair value (+42%).
| Metric | CAT | TDG |
|---|---|---|
| Forward yield | 0.74% | 7.47% |
| Annual dividend | $6.52 | $90.00 |
| Payout ratio | 30% | 0% |
| Years of growth | 32 yr | 3 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 317% | 100% |
| Dividend safety score | 89 (A) | 44 (D) |
| Fair value estimate | $485.27 | $1,718.44 |
| Upside to fair value | -45% | +42% |
| Frequency | quarterly | annual |
| Market cap | $398.1B | $67.4B |
| P/E ratio | 43.9 | 37.9 |
Higher yield
TDG
7.47%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
TDG
+42% upside
CAT vs TDG — FAQ
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