CAT vs VSEC: Which Is the Better Dividend Stock?
As of Oct 31, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CAT offers the higher yield at 1.05%, VSEC has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 39% below its share price).
Key facts: CAT vs VSEC
Data as of · Source: SmarterDividends data
- As of Oct 31, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 1.05%, versus 0.27% for VSE Corporation (VSEC).
- As of Oct 31, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and VSEC's A (98/100).
- By SmarterDividends' count as of Oct 31, 2026, CAT has raised its dividend for 32 consecutive years and VSEC for 0.
- As of Oct 31, 2026, CAT pays out 26% of its earnings as dividends and VSEC pays out 13%.
- As of Oct 31, 2026, CAT's fair-value estimate is 39% below its share price and VSEC's fair-value estimate is 45% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs VSEC: Dividend Yield, Safety & Value Compared," updated Oct 31, 2026, https://smarterdividends.com/compare/cat-vs-vsec
| Metric | CAT | VSEC |
|---|---|---|
| Forward yield | 1.05% | 0.27% |
| Annual dividend | $6.52 | $0.40 |
| Payout ratio | 26% | 13% |
| Years of growth | 32 yr | 0 yr |
| 5-yr dividend growth | 7.2% | 2.1% |
| 5-yr total return | 222% | 170% |
| Dividend safety score | 91 (A) | 98 (A) |
| Fair value estimate | $377.48 | $81.77 |
| Upside to fair value | -39% | -45% |
| Frequency | quarterly | quarterly |
| Market cap | $286.3B | $4.1B |
| P/E ratio | 24.4 | 49.4 |
Higher yield
CAT
1.05%
Safer dividend
VSEC
Grade A
Faster growth
CAT
7.2%
Better value
CAT
-39% upside
CAT vs VSEC — FAQ
Is CAT or VSEC a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). CAT offers the higher yield (1.05%), while VSEC has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, CAT or VSEC?
CAT has the higher forward dividend yield at 1.05%, versus 0.27% for VSEC.
Is CAT or VSEC safer?
VSEC has the higher dividend-safety score (98/100 vs 91/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or VSEC better value right now?
As of Oct 31, 2026, CAT looks like the better value: its fair-value estimate is 39% below its share price (overvalued). For VSEC, its fair-value estimate is 45% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.