Caterpillar Inc.

CAT
IndustrialsDividend Aristocrat
$948.08
0.64%Overvalued

Caterpillar Inc. (CAT) is a Industrials company that currently yields 0.64% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $161.23 and the overvaluation threshold at $438.31. Caterpillar Inc. holds a quality score of 65/100 (Good), reflecting 25 consecutive years of dividend growth with a 30% payout ratio. The 5-year dividend CAGR stands at 7.2%.

CAT Dividend Yield History — Weiss Valuation

Underval. $161.23Overval. $438.31

Distance to undervalued

Entry price is stretched

Needs 83.0% downside to reach the Weiss buy zone

Undervaluation starts near $161.23, where the annual dividend would imply roughly 3.75% yield. That is 3.11% above today's yield.

Buy-zone price

$161.23

Target yield

3.75%

Research checklist

What to clear before buying the yield

Updated Jul 9, 2026

Dividend durability

25Y

Long dividend history supports a deeper look.

Earnings payout

30%

Earnings coverage leaves room for noise.

Cash payout

80%

Free cash flow coverage supports the payment.

Dividend growth

7.2%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-07-082026-07-09

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Caterpillar Inc. is trading near its historical overvaluation band.

Current yield 0.6% vs historical max 4.3% (15% of maximum).

12 consecutive years without a dividend cut.

Conservative payout ratio of 30%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 65/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

CAT Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$68

Year 10 Income

$139

Yield on Cost

1.4%

Total Income

$994

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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CAT Dividend Quality Score

Quality Score

65/ 100

Good

Payout Ratio25/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage5/15

Key Metrics

Current Price$948.08
Annual Dividend$6.04
Current Yield0.64%
Yield — Max (10Y)4.33%
Yield — Min (10Y)1.51%
Undervalued Below$161.23
Overvalued Above$438.31
Payout Ratio29.58%
CAGR Dividend 5Y7.2%
CAGR Dividend 10Y7.1%
Years No Cut12y

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25
consecutive years of dividend growth