SmarterDividends

COST vs DG: Which Is the Better Dividend Stock?

As of July 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. DG offers the higher yield at 1.88%, COST has the higher dividend-safety score, and DG trades at the larger discount to fair value (+13%).

MetricCOSTDG
Forward yield0.62%1.88%
Annual dividend$5.88$2.36
Payout ratio27%33%
Years of growth21 yr0 yr
5-yr dividend growth13.0%11.0%
5-yr total return107%-44%
Dividend safety score95 (A)85 (A)
Fair value estimate$422.97$142.58
Upside to fair value-55%+13%
Frequencyquarterlyquarterly
Market cap$415.0B$27.5B
P/E ratio47.417.8

Higher yield

DG

1.88%

Safer dividend

COST

Grade A

Faster growth

COST

13.0%

Better value

DG

+13% upside

COST vs DG — FAQ

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