SmarterDividends

CAT vs XRX: Which Is the Better Dividend Stock?

As of Oct 18, 2026, CAT (Caterpillar Inc.) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. XRX offers the higher yield at 4.05%, CAT has the higher dividend-safety score, and XRX looks like the better value (its fair-value estimate is 35% below its share price).

Key facts: CAT vs XRX

Data as of · Source: SmarterDividends data

  • As of Oct 18, 2026, Xerox Holdings Corporation (XRX) has the higher forward dividend yield at 4.05%, versus 0.89% for Caterpillar Inc. (CAT).
  • As of Oct 18, 2026, SmarterDividends grades CAT's dividend safety A (92/100) and XRX's C (60/100).
  • By SmarterDividends' count as of Oct 18, 2026, CAT has raised its dividend for 32 consecutive years and XRX for 0.
  • As of Oct 18, 2026, CAT pays out 26% of its earnings as dividends and XRX pays out 94%.
  • As of Oct 18, 2026, CAT's fair-value estimate is 48% below its share price and XRX's fair-value estimate is 35% below its share price, so XRX looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "CAT vs XRX: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cat-vs-xrx

MetricCATXRX
Forward yield0.89%4.05%
Annual dividend$6.52$0.10
Payout ratio26%94%
Years of growth32 yr0 yr
5-yr dividend growth7.2%-36.9%
5-yr total return278%-87%
Dividend safety score92 (A)60 (C)
Fair value estimate$377.48$1.60
Upside to fair value-48%-35%
Frequencyquarterlyquarterly
Market cap$335.9B$324.3M
P/E ratio31.5—

Higher yield

XRX

4.05%

Safer dividend

CAT

Grade A

Faster growth

CAT

7.2%

Better value

XRX

-35% upside

CAT vs XRX — FAQ

Is CAT or XRX a better dividend stock?

On the data, CAT wins more head-to-head categories (6 vs 2). XRX offers the higher yield (4.05%), 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 XRX?

XRX has the higher forward dividend yield at 4.05%, versus 0.89% for CAT.

Is CAT or XRX safer?

CAT has the higher dividend-safety score (92/100 vs 60/100), reflecting stronger payout coverage and dividend-growth history.

Is CAT or XRX better value right now?

As of Oct 18, 2026, XRX looks like the better value: its fair-value estimate is 35% below its share price (overvalued). For CAT, its fair-value estimate is 48% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.