Caterpillar Inc.

CAT
IndustrialsDividend Aristocrat
$827.51
0.73%Overvalued

Caterpillar 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

Underval. $169.89Overval. $520.16

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

25Y

Long 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

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More research

Full price history & technical analysis

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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

70/ 100

Good

Payout Ratio25/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage10/15

Key Metrics

Current Price$827.51
Annual Dividend$6.04
Current Yield0.73%
Yield — Max (10Y)4.31%
Yield — Min (10Y)1.44%
Undervalued Below$169.89
Overvalued Above$520.16
Payout Ratio26.00%
CAGR Dividend 5Y7.2%
CAGR Dividend 10Y7.1%
Years No Cut12y

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25
consecutive years of dividend growth