CAT vs WMS: Which Is the Better Dividend Stock?
As of Nov 5, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. CAT offers the higher yield at 1.10%, CAT has the higher dividend-safety score, and CAT looks like the better value (its fair-value estimate is 30% below its share price).
Key facts: CAT vs WMS
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 1.10%, versus 0.56% for Advanced Drainage Systems, Inc. (WMS).
- As of Nov 5, 2026, SmarterDividends grades CAT's dividend safety A (91/100) and WMS's A (84/100).
- By SmarterDividends' count as of Nov 5, 2026, CAT has raised its dividend for 32 consecutive years and WMS for 11.
- As of Nov 5, 2026, CAT pays out 24% of its earnings as dividends and WMS pays out 13%.
- As of Nov 5, 2026, CAT's fair-value estimate is 30% below its share price and WMS's fair-value estimate is 48% below its share price, so CAT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs WMS: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cat-vs-wms
| Metric | CAT | WMS |
|---|---|---|
| Forward yield | 1.10% | 0.56% |
| Annual dividend | $6.52 | $0.80 |
| Payout ratio | 24% | 13% |
| Years of growth | 32 yr | 11 yr |
| 5-yr dividend growth | 7.2% | 14.2% |
| 5-yr total return | 222% | 9% |
| Dividend safety score | 91 (A) | 84 (A) |
| Fair value estimate | $400.01 | $65.84 |
| Upside to fair value | -30% | -48% |
| Frequency | quarterly | quarterly |
| Market cap | $260.3B | $9.5B |
| P/E ratio | 22.3 | 21.4 |
Higher yield
CAT
1.10%
Safer dividend
CAT
Grade A
Faster growth
WMS
14.2%
Better value
CAT
-30% upside
CAT vs WMS — FAQ
Is CAT or WMS a better dividend stock?
On the data, CAT wins more head-to-head categories (6 vs 2). CAT offers the higher yield (1.10%), while CAT 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 WMS?
CAT has the higher forward dividend yield at 1.10%, versus 0.56% for WMS.
Is CAT or WMS safer?
CAT has the higher dividend-safety score (91/100 vs 84/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or WMS better value right now?
As of Nov 5, 2026, CAT looks like the better value: its fair-value estimate is 30% below its share price (overvalued). For WMS, its fair-value estimate is 48% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.