Caterpillar Inc.
CATCaterpillar Inc. (CAT) is a Industrials company that currently yields 0.73% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $169.89 and the overvaluation threshold at $520.16. Caterpillar Inc. holds a quality score of 70/100 (Good), reflecting 25 consecutive years of dividend growth with a 26% payout ratio. The 5-year dividend CAGR stands at 7.2%.
CAT Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 79.5% downside to reach the Weiss buy zone
Undervaluation starts near $169.89, where the annual dividend would imply roughly 3.56% yield. That is 2.83% above today's yield.
Buy-zone price
$169.89
Target yield
3.56%
Research checklist
What to clear before buying the yield
Updated Oct 7, 2026
Dividend durability
25YLong dividend history supports a deeper look.
Earnings payout
26%Earnings coverage leaves room for noise.
Cash payout
59%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
2026-10-06 → 2026-10-07
Price
-3.2%$854.71 → $827.51
Price fell 3.2% since the prior snapshot.
Why Now?
Caterpillar Inc. is trading near its historical overvaluation band.
Current yield 0.7% vs historical max 4.3% (17% of maximum).
12 consecutive years without a dividend cut.
Conservative payout ratio of 26%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 70/100 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
$78
Year 10 Income
$161
Yield on Cost
1.63%
Total Income
$1,146
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
Sharesight ↗CAT Dividend Quality Score
Quality Score
Good
Key Metrics
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