COST vs HRL: Which Is the Better Dividend Stock?
As of Oct 27, 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. HRL offers the higher yield at 5.58%, COST has the higher dividend-safety score, and HRL looks like the better value (its fair-value estimate is 35% above its share price).
Key facts: COST vs HRL
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Hormel Foods Corporation (HRL) has the higher forward dividend yield at 5.58%, versus 0.59% for Costco Wholesale Corporation (COST).
- As of Oct 27, 2026, SmarterDividends grades COST's dividend safety A (97/100) and HRL's B (76/100).
- By SmarterDividends' count as of Oct 27, 2026, COST has raised its dividend for 21 consecutive years and HRL for 24.
- As of Oct 27, 2026, COST pays out 27% of its earnings as dividends and HRL pays out 188%.
- As of Oct 27, 2026, COST's fair-value estimate is 51% below its share price and HRL's fair-value estimate is 35% above its share price, so HRL looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs HRL: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/cost-vs-hrl
| Metric | COST | HRL |
|---|---|---|
| Forward yield | 0.59% | 5.58% |
| Annual dividend | $5.88 | $1.17 |
| Payout ratio | 27% | 188% |
| Years of growth | 21 yr | 24 yr |
| 5-yr dividend growth | 13.0% | 4.5% |
| 5-yr total return | 86% | -49% |
| Dividend safety score | 97 (A) | 76 (B) |
| Fair value estimate | $489.60 | $28.33 |
| Upside to fair value | -51% | +35% |
| Frequency | quarterly | quarterly |
| Market cap | $445.4B | $11.5B |
| P/E ratio | 48.4 | 33.8 |
Higher yield
HRL
5.58%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
HRL
+35% upside
COST vs HRL — FAQ
Is COST or HRL a better dividend stock?
On the data, COST wins more head-to-head categories (5 vs 3). HRL offers the higher yield (5.58%), 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 HRL?
HRL has the higher forward dividend yield at 5.58%, versus 0.59% for COST.
Is COST or HRL safer?
COST has the higher dividend-safety score (97/100 vs 76/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or HRL better value right now?
As of Oct 27, 2026, HRL looks like the better value: its fair-value estimate is 35% 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.