BABB vs COST: Which Is the Better Dividend Stock?
As of September 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. BABB offers the higher yield at 4.69%, COST has the higher dividend-safety score, and BABB trades at the larger discount to fair value (+20%).
| Metric | BABB | COST |
|---|---|---|
| Forward yield | 4.69% | 0.65% |
| Annual dividend | $0.04 | $5.88 |
| Payout ratio | 50% | 27% |
| Years of growth | 0 yr | 21 yr |
| 5-yr dividend growth | 0.0% | 13.0% |
| 5-yr total return | 18% | 101% |
| Dividend safety score | 73 (B) | 95 (A) |
| Fair value estimate | $1.02 | $426.27 |
| Upside to fair value | +20% | -53% |
| Frequency | quarterly | quarterly |
| Market cap | $6.2M | $401.2B |
| P/E ratio | 10.6 | 45.5 |
Higher yield
BABB
4.69%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
BABB
+20% upside
BABB vs COST — FAQ
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