CAT vs UPS: Which Is the Better Dividend Stock?
As of Oct 27, 2026, CAT and UPS are closely matched. UPS offers the higher yield at 6.54%, CAT has the higher dividend-safety score, and UPS looks like the better value (its fair-value estimate is 12% above its share price).
Key facts: CAT vs UPS
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, United Parcel Service, Inc. (UPS) has the higher forward dividend yield at 6.54%, versus 0.94% for Caterpillar Inc. (CAT).
- As of Oct 27, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and UPS's A (81/100).
- By SmarterDividends' count as of Oct 27, 2026, CAT has raised its dividend for 32 consecutive years and UPS for 16.
- As of Oct 27, 2026, CAT pays out 26% of its earnings as dividends and UPS pays out 122%.
- As of Oct 27, 2026, CAT's fair-value estimate is 45% below its share price and UPS's fair-value estimate is 12% above its share price, so UPS looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs UPS: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/cat-vs-ups
| Metric | CAT | UPS |
|---|---|---|
| Forward yield | 0.94% | 6.54% |
| 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 | 255% | -49% |
| Dividend safety score | 92 (A) | 81 (A) |
| Fair value estimate | $377.48 | $112.73 |
| Upside to fair value | -45% | +12% |
| Frequency | quarterly | quarterly |
| Market cap | $318.2B | $85.4B |
| P/E ratio | 29.8 | 18.6 |
Higher yield
UPS
6.54%
Safer dividend
CAT
Grade A
Faster growth
UPS
10.2%
Better value
UPS
+12% upside
CAT vs UPS — FAQ
Is CAT or UPS a better dividend stock?
CAT and UPS are closely matched. UPS has the higher yield; CAT scores better on safety.
Which has a higher dividend yield, CAT or UPS?
UPS has the higher forward dividend yield at 6.54%, versus 0.94% for CAT.
Is CAT or UPS safer?
CAT has the higher dividend-safety score (92/100 vs 81/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or UPS better value right now?
As of Oct 27, 2026, UPS looks like the better value: its fair-value estimate is 12% above its share price (fairly valued). For CAT, its fair-value estimate is 45% below its share price.
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