CAT vs WTS: Which Is the Better Dividend Stock?
As of Oct 24, 2026, CAT and WTS are closely matched. CAT offers the higher yield at 0.95%, WTS has the higher dividend-safety score, and WTS looks like the better value (its fair-value estimate is 29% below its share price).
Key facts: CAT vs WTS
Data as of · Source: SmarterDividends data
- As of Oct 24, 2026, Caterpillar Inc. (CAT) has the higher forward dividend yield at 0.95%, versus 0.64% for Watts Water Technologies, Inc. (WTS).
- As of Oct 24, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and WTS's A (96/100).
- By SmarterDividends' count as of Oct 24, 2026, CAT has raised its dividend for 32 consecutive years and WTS for 13.
- As of Oct 24, 2026, CAT pays out 26% of its earnings as dividends and WTS pays out 19%.
- As of Oct 24, 2026, CAT's fair-value estimate is 45% below its share price and WTS's fair-value estimate is 29% below its share price, so WTS looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CAT vs WTS: Dividend Yield, Safety & Value Compared," updated Oct 24, 2026, https://smarterdividends.com/compare/cat-vs-wts
| Metric | CAT | WTS |
|---|---|---|
| Forward yield | 0.95% | 0.64% |
| Annual dividend | $6.52 | $2.30 |
| Payout ratio | 26% | 19% |
| Years of growth | 32 yr | 13 yr |
| 5-yr dividend growth | 7.2% | 16.7% |
| 5-yr total return | 255% | 90% |
| Dividend safety score | 92 (A) | 96 (A) |
| Fair value estimate | $377.48 | $256.32 |
| Upside to fair value | -45% | -29% |
| Frequency | quarterly | quarterly |
| Market cap | $315.8B | $12.0B |
| P/E ratio | 29.6 | 31.9 |
Higher yield
CAT
0.95%
Safer dividend
WTS
Grade A
Faster growth
WTS
16.7%
Better value
WTS
-29% upside
CAT vs WTS — FAQ
Is CAT or WTS a better dividend stock?
CAT and WTS are closely matched. CAT has the higher yield; WTS scores better on safety.
Which has a higher dividend yield, CAT or WTS?
CAT has the higher forward dividend yield at 0.95%, versus 0.64% for WTS.
Is CAT or WTS safer?
WTS has the higher dividend-safety score (96/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is CAT or WTS better value right now?
As of Oct 24, 2026, WTS looks like the better value: its fair-value estimate is 29% below its share price (overvalued). For CAT, 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.