SmarterDividends

COST vs DG: 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. DG offers the higher yield at 1.93%, COST has the higher dividend-safety score, and DG trades at the larger discount to fair value (+24%).

MetricCOSTDG
Forward yield0.66%1.93%
Annual dividend$5.88$2.36
Payout ratio27%31%
Years of growth21 yr0 yr
5-yr dividend growth13.0%11.0%
5-yr total return82%-45%
Dividend safety score97 (A)83 (A)
Fair value estimate$441.82$152.13
Upside to fair value-51%+24%
Frequencyquarterlyquarterly
Market cap$397.1B$27.0B
P/E ratio45.015.9

Higher yield

DG

1.93%

Safer dividend

COST

Grade A

Faster growth

COST

13.0%

Better value

DG

+24% upside

COST vs DG — FAQ

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