Caterpillar Inc.
CATCaterpillar 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
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
25YLong 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
2026-07-08 → 2026-07-09
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
Sharesight ↗CAT Dividend Quality Score
Quality Score
Good
Key Metrics
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