COST vs DEO: Which Is the Better Dividend Stock?
As of Nov 5, 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. DEO offers the higher yield at 2.05%, COST has the higher dividend-safety score, and DEO looks like the better value (its fair-value estimate is 19% below its share price).
Key facts: COST vs DEO
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Diageo plc (DEO) has the higher forward dividend yield at 2.05%, versus 0.56% for Costco Wholesale Corporation (COST).
- As of Nov 5, 2026, SmarterDividends grades COST's dividend safety A (97/100) and DEO's C (53/100).
- By SmarterDividends' count as of Nov 5, 2026, COST has raised its dividend for 21 consecutive years and DEO for 0.
- As of Nov 5, 2026, COST pays out 27% of its earnings as dividends and DEO pays out 107%.
- As of Nov 5, 2026, COST's fair-value estimate is 54% below its share price and DEO's fair-value estimate is 19% below its share price, so DEO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs DEO: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cost-vs-deo
| Metric | COST | DEO |
|---|---|---|
| Forward yield | 0.56% | 2.05% |
| Annual dividend | $5.88 | $2.00 |
| Payout ratio | 27% | 107% |
| Years of growth | 21 yr | 0 yr |
| 5-yr dividend growth | 13.0% | 2.6% |
| 5-yr total return | 88% | -54% |
| Dividend safety score | 97 (A) | 53 (C) |
| Fair value estimate | $491.02 | $80.99 |
| Upside to fair value | -54% | -19% |
| Frequency | quarterly | semiannual |
| Market cap | $474.6B | $55.9B |
| P/E ratio | 51.6 | 32.2 |
Higher yield
DEO
2.05%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
DEO
-19% upside
COST vs DEO — FAQ
Is COST or DEO a better dividend stock?
On the data, COST wins more head-to-head categories (6 vs 2). DEO offers the higher yield (2.05%), 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, COST or DEO?
DEO has the higher forward dividend yield at 2.05%, versus 0.56% for COST.
Is COST or DEO safer?
COST has the higher dividend-safety score (97/100 vs 53/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or DEO better value right now?
As of Nov 5, 2026, DEO looks like the better value: its fair-value estimate is 19% below its share price (overvalued). For COST, its fair-value estimate is 54% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.