CAT vs UNP: Which Is the Better Dividend Stock?
As of August 2026, CAT (Caterpillar, Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. UNP offers the higher yield at 1.94%, CAT has the higher dividend-safety score, and UNP trades at the larger discount to fair value (-35%).
| Metric | CAT | UNP |
|---|---|---|
| Forward yield | 0.78% | 1.94% |
| Annual dividend | $6.52 | $5.68 |
| Payout ratio | 26% | 45% |
| Years of growth | 32 yr | 19 yr |
| 5-yr dividend growth | 7.2% | 7.0% |
| 5-yr total return | 299% | 35% |
| Dividend safety score | 92 (A) | 90 (A) |
| Fair value estimate | $523.22 | $189.66 |
| Upside to fair value | -38% | -35% |
| Frequency | quarterly | quarterly |
| Market cap | $387.7B | $174.0B |
| P/E ratio | 36.1 | 23.7 |
Higher yield
UNP
1.94%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
UNP
-35% upside
CAT vs UNP — FAQ
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