BTI vs COST: Which Is the Better Dividend Stock?
As of Oct 27, 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. BTI offers the higher yield at 5.56%, COST has the higher dividend-safety score, and BTI looks like the better value (its fair-value estimate is 45% above its share price).
Key facts: BTI vs COST
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, British American Tobacco p.l.c. (BTI) has the higher forward dividend yield at 5.56%, versus 0.59% for Costco Wholesale Corporation (COST).
- As of Oct 27, 2026, SmarterDividends grades BTI's dividend safety C (62/100) and COST's A (97/100).
- By SmarterDividends' count as of Oct 27, 2026, BTI has raised its dividend for 2 consecutive years and COST for 21.
- As of Oct 27, 2026, BTI pays out 84% of its earnings as dividends and COST pays out 27%.
- As of Oct 27, 2026, BTI's fair-value estimate is 45% above its share price and COST's fair-value estimate is 51% below its share price, so BTI looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BTI vs COST: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/bti-vs-cost
| Metric | BTI | COST |
|---|---|---|
| Forward yield | 5.56% | 0.59% |
| Annual dividend | $3.34 | $5.88 |
| Payout ratio | 84% | 27% |
| Years of growth | 2 yr | 21 yr |
| 5-yr dividend growth | 2.0% | 13.0% |
| 5-yr total return | 77% | 86% |
| Dividend safety score | 62 (C) | 97 (A) |
| Fair value estimate | $87.36 | $489.60 |
| Upside to fair value | +45% | -51% |
| Frequency | quarterly | quarterly |
| Market cap | $129.2B | $445.4B |
| P/E ratio | 15.3 | 48.4 |
Higher yield
BTI
5.56%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
BTI
+45% upside
BTI vs COST — FAQ
Is BTI or COST a better dividend stock?
On the data, COST wins more head-to-head categories (6 vs 2). BTI offers the higher yield (5.56%), while COST has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, BTI or COST?
BTI has the higher forward dividend yield at 5.56%, versus 0.59% for COST.
Is BTI or COST safer?
COST has the higher dividend-safety score (97/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is BTI or COST better value right now?
As of Oct 27, 2026, BTI looks like the better value: its fair-value estimate is 45% above its share price (undervalued). For COST, its fair-value estimate is 51% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.