SmarterDividends

CAT vs VSEC: Which Is the Better Dividend Stock?

As of September 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CAT offers the higher yield at 0.80%, VSEC has the higher dividend-safety score, and CAT trades at the larger discount to fair value (-40%).

MetricCATVSEC
Forward yield0.80%0.21%
Annual dividend$6.52$0.40
Payout ratio26%13%
Years of growth32 yr0 yr
5-yr dividend growth7.2%2.1%
5-yr total return326%305%
Dividend safety score92 (A)98 (A)
Fair value estimate$493.16$99.74
Upside to fair value-40%-49%
Frequencyquarterlyquarterly
Market cap$376.3B$5.5B
P/E ratio35.262.1

Higher yield

CAT

0.80%

Safer dividend

VSEC

Grade A

Faster growth

CAT

7.2%

Better value

CAT

-40% upside

CAT vs VSEC — FAQ

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