CAT vs UNP: Which Is the Better Dividend Stock?
As of July 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. UNP offers the higher yield at 1.83%, CAT has the higher dividend-safety score, and UNP trades at the larger discount to fair value (-41%).
| Metric | CAT | UNP |
|---|---|---|
| Forward yield | 0.74% | 1.83% |
| Annual dividend | $6.52 | $5.52 |
| Payout ratio | 30% | 45% |
| Years of growth | 32 yr | 19 yr |
| 5-yr dividend growth | 7.2% | 7.0% |
| 5-yr total return | 317% | 39% |
| Dividend safety score | 89 (A) | 88 (A) |
| Fair value estimate | $485.27 | $179.51 |
| Upside to fair value | -45% | -41% |
| Frequency | quarterly | quarterly |
| Market cap | $398.1B | $175.9B |
| P/E ratio | 43.9 | 24.8 |
Higher yield
UNP
1.83%
Safer dividend
CAT
Grade A
Faster growth
CAT
7.2%
Better value
UNP
-41% upside
CAT vs UNP — FAQ
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.