CAT vs TNC: Which Is the Better Dividend Stock?
As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TNC offers the higher yield at 1.80%, CAT has the higher dividend-safety score, and TNC trades at the larger discount to fair value (+12%).
| Metric | CAT | TNC |
|---|---|---|
| Forward yield | 0.80% | 1.80% |
| Annual dividend | $6.52 | $1.24 |
| Payout ratio | 26% | 118% |
| Years of growth | 32 yr | 38 yr |
| 5-yr dividend growth | 7.2% | 6.1% |
| 5-yr total return | 326% | -7% |
| Dividend safety score | 92 (A) | 86 (A) |
| Fair value estimate | $493.16 | $77.32 |
| Upside to fair value | -40% | +12% |
| Frequency | quarterly | quarterly |
| Market cap | $376.3B | $1.2B |
| P/E ratio | 35.2 | 66.1 |
Higher yield
TNC
1.80%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
TNC
+12% upside
CAT vs TNC — FAQ
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