CAT vs TKR: Which Is the Better Dividend Stock?
As of Oct 29, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. TKR offers the higher yield at 1.27%, CAT has the higher dividend-safety score, and TKR looks like the better value (its fair-value estimate is 20% below its share price).
Key facts: CAT vs TKR
Data as of · Source: SmarterDividends data
- As of Oct 29, 2026, The Timken Company (TKR) has the higher forward dividend yield at 1.27%, versus 0.91% for Caterpillar Inc. (CAT).
- As of Oct 29, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and TKR's A (89/100).
- By SmarterDividends' count as of Oct 29, 2026, CAT has raised its dividend for 32 consecutive years and TKR for 12.
- As of Oct 29, 2026, CAT pays out 26% of its earnings as dividends and TKR pays out 38%.
- As of Oct 29, 2026, CAT's fair-value estimate is 47% below its share price and TKR's fair-value estimate is 20% below its share price, so TKR looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs TKR: Dividend Yield, Safety & Value Compared," updated Oct 29, 2026, https://smarterdividends.com/compare/cat-vs-tkr
| Metric | CAT | TKR |
|---|---|---|
| Forward yield | 0.91% | 1.27% |
| Annual dividend | $6.52 | $1.44 |
| Payout ratio | 26% | 38% |
| Years of growth | 32 yr | 12 yr |
| 5-yr dividend growth | 7.2% | 4.2% |
| 5-yr total return | 255% | 66% |
| Dividend safety score | 92 (A) | 89 (A) |
| Fair value estimate | $377.48 | $91.27 |
| Upside to fair value | -47% | -20% |
| Frequency | quarterly | quarterly |
| Market cap | $327.9B | $7.9B |
| P/E ratio | 30.7 | 30.8 |
Higher yield
TKR
1.27%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
TKR
-20% upside
CAT vs TKR — FAQ
Is CAT or TKR a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). TKR offers the higher yield (1.27%), 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 TKR?
TKR has the higher forward dividend yield at 1.27%, versus 0.91% for CAT.
Is CAT or TKR safer?
CAT has the higher dividend-safety score (92/100 vs 89/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or TKR better value right now?
As of Oct 29, 2026, TKR looks like the better value: its fair-value estimate is 20% below its share price (overvalued). For CAT, its fair-value estimate is 47% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.