CAT vs TDG: Which Is the Better Dividend Stock?
As of Nov 5, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. CAT offers the higher yield at 1.10%, CAT has the higher dividend-safety score, and TDG looks like the better value (its fair-value estimate is 28% below its share price).
Key facts: CAT vs TDG
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 1.10%, versus 0.00% for TransDigm Group Incorporated (TDG).
- As of Nov 5, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and TDG's C (51/100).
- By SmarterDividends' count as of Nov 5, 2026, CAT has raised its dividend for 32 consecutive years and TDG for 3.
- As of Nov 5, 2026, CAT's fair-value estimate is 30% below its share price and TDG's fair-value estimate is 28% below its share price, so TDG looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs TDG: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cat-vs-tdg
| Metric | CAT | TDG |
|---|---|---|
| Forward yield | 1.10% | 0.00% |
| Annual dividend | $6.52 | $0.00 |
| Payout ratio | 24% | 0% |
| Years of growth | 32 yr | 3 yr |
| 5-yr dividend growth | 7.2% | — |
| 5-yr total return | 222% | 98% |
| Dividend safety score | 91 (A) | 51 (C) |
| Fair value estimate | $400.01 | $861.34 |
| Upside to fair value | -30% | -28% |
| Frequency | quarterly | annual |
| Market cap | $260.3B | $66.1B |
| P/E ratio | 22.3 | 36.3 |
Higher yield
CAT
1.10%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
TDG
-28% upside
CAT vs TDG — FAQ
Is CAT or TDG a better dividend stock?
On the data, CAT wins more head-to-head categories (5 vs 2). CAT offers the higher yield (1.10%), 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 TDG?
CAT has the higher forward dividend yield at 1.10%, versus 0.00% for TDG.
Is CAT or TDG safer?
CAT has the higher dividend-safety score (91/100 vs 51/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or TDG better value right now?
As of Nov 5, 2026, TDG looks like the better value: its fair-value estimate is 28% below its share price (overvalued). For CAT, its fair-value estimate is 30% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.