CaterpillarXSWX:CAT +0.20%83 5-Year Yield-on-Cost % is 0.42 as of Jul. 04, 2026, which is 86% below its 10-year median of 3.00. GuruFocus rates XSWX:CAT with a GF Score™ of 83/100 and a GF Value™ of CHF341.22. The stock has 6 warning signs investors should review. Among 137 Farm & Heavy Construction Machinery companies, Caterpillar ranks worse than 81.75% on this metric.
Caterpillar's yield on cost for the quarter that ended in Mar. 2026 was 0.42.
The historical rank and industry rank for Caterpillar's 5-Year Yield-on-Cost % or its related term are showing as below:
XSWX:CAT'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.86 Med: 3 Max: 5.71
Current: 0.42
During the past 13 years, Caterpillar's highest Yield on Cost was 5.71. The lowest was 0.86. And the median was 3.00.
XSWX:CAT's 5-Year Yield-on-Cost % is ranked worse than 81.75% of 137
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 2.86
vs XSWX:CAT: 0.42
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Caterpillar 5-Year Yield-on-Cost % Related Terms
XSWX:CAT vs DE, PCAR, CNH: 5-Year Yield-on-Cost % Comparison
For the Farm & Heavy Construction Machinery subindustry, Caterpillar's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Caterpillar 5-Year Yield-on-Cost % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Caterpillar's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Caterpillar's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Caterpillar is calculated as
Caterpillar (XSWX:CAT) has a 5-Year Yield-on-Cost % of 0.42 as of Jul. 04, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Caterpillar and its competitors. This is 86% below median its historical median of 3.00. Over the past decade, Caterpillar's 5-Year Yield-on-Cost % has ranged from 0.86 to 5.71. According to the industry distribution chart, Caterpillar ranks #112 out of 137 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 81.8%.
Is Caterpillar's 5-Year Yield-on-Cost % too high?
Caterpillar's current 5-Year Yield-on-Cost % of 0.42 is 86% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 5.71. The Farm & Heavy Construction Machinery industry median 5-Year Yield-on-Cost % is 2.86. Caterpillar's value of 0.42 is 85.3% below this industry median. Based on the distribution chart, Caterpillar ranks #112 out of 137 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Caterpillar has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Caterpillar's 5-Year Yield-on-Cost % compare to DE and PCAR?
According to the Farm & Heavy Construction Machinery industry distribution chart, Caterpillar ranks #112 out of 137 companies for 5-Year Yield-on-Cost %. This places Caterpillar in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.86. Caterpillar's value of 0.42 is 85.3% below this benchmark. Historically, Caterpillar's own 5-Year Yield-on-Cost % has ranged from 0.86 to 5.71 over the past decade. While the company's 10-year median is 3.00 vs. the industry median of 2.86, Caterpillar has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Farm & Heavy Construction Machinery company?
The median 5-Year Yield-on-Cost % among Farm & Heavy Construction Machinery companies is 2.86, based on 137 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Caterpillar's current 5-Year Yield-on-Cost % of 0.42 is 85.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Caterpillar and its competitors. For the Farm & Heavy Construction Machinery industry, the median 5-Year Yield-on-Cost % is 2.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caterpillar's current 5-Year Yield-on-Cost % is 0.42, which is 86% below median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caterpillar stock overvalued right now?
Caterpillar (XSWX:CAT) has a current 5-Year Yield-on-Cost % of 0.42. The stock's GF Value™ is CHF341.22, compared to a current price of CHF784.40 — trading 129.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.42, which is 86% below median its 10-year median of 3.00 and 85.3% below the Farm & Heavy Construction Machinery industry median of 2.86. Caterpillar's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Caterpillar (XSWX:CAT), the current 5-Year Yield-on-Cost % is 0.42 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Caterpillar (XSWX:CAT) Overvalued in 2026?
Based on GuruFocus' analysis, Caterpillar stock appears to be overvalued.
The current stock price of CHF784.40 is trading 129.9% above its estimated GF Value™ of CHF341.22.
Key valuation signals for XSWX:CAT:
5-Year Yield-on-Cost %: 0.42 (86% below median its 10-year median of 3.00)
GF Value™: CHF341.22 vs. price of CHF784.40 (129.9% above fair value)
Industry Position: 85.3% below the Farm & Heavy Construction Machinery median (#112 of 137)
No single metric tells the full story. See the XSWX:CAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments are construction, resource, energy, and transportation. Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has a global reach that is approximately evenly balanced between the US and the rest of the world. Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of over 150 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.
83GF Score
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