CAT vs UPS: Which Is the Better Dividend Stock?
As of September 2026, CAT and UPS are closely matched. UPS offers the higher yield at 6.56%, CAT has the higher dividend-safety score, and UPS trades at the larger discount to fair value (+9%).
| Metric | CAT | UPS |
|---|---|---|
| Forward yield | 0.81% | 6.56% |
| Annual dividend | $6.52 | $6.56 |
| Payout ratio | 26% | 122% |
| Years of growth | 32 yr | 16 yr |
| 5-yr dividend growth | 7.2% | 10.2% |
| 5-yr total return | 326% | -45% |
| Dividend safety score | 92 (A) | 81 (A) |
| Fair value estimate | $487.98 | $111.29 |
| Upside to fair value | -40% | +9% |
| Frequency | quarterly | quarterly |
| Market cap | $376.3B | $85.3B |
| P/E ratio | 34.7 | 18.6 |
Higher yield
UPS
6.56%
Safer dividend
CAT
Grade A
Faster growth
UPS
10.2%
Better value
UPS
+9% upside
CAT vs UPS — FAQ
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