COST vs KO: Which Is the Better Dividend Stock?
As of Oct 8, 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. KO offers the higher yield at 2.47%, COST has the higher dividend-safety score, and KO looks like the better value (its fair-value estimate is 44% below its share price).
Key facts: COST vs KO
Data as of · Source: SmarterDividends data
- As of Oct 8, 2026, The Coca-Cola Company (KO) has the higher forward dividend yield at 2.47%, versus 0.63% for Costco Wholesale Corporation (COST).
- As of Oct 8, 2026, SmarterDividends grades COST's dividend safety A (97/100) and KO's A (92/100).
- By SmarterDividends' count as of Oct 8, 2026, COST has raised its dividend for 21 consecutive years and KO for 55.
- As of Oct 8, 2026, COST pays out 27% of its earnings as dividends and KO pays out 62%.
- As of Oct 8, 2026, COST's fair-value estimate is 46% below its share price and KO's fair-value estimate is 44% below its share price, so KO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs KO: Dividend Yield, Safety & Value Compared," updated Oct 8, 2026, https://smarterdividends.com/compare/cost-vs-ko
| Metric | COST | KO |
|---|---|---|
| Forward yield | 0.63% | 2.47% |
| Annual dividend | $5.88 | $2.12 |
| Payout ratio | 27% | 62% |
| Years of growth | 21 yr | 55 yr |
| 5-yr dividend growth | 13.0% | 4.5% |
| 5-yr total return | 87% | 52% |
| Dividend safety score | 97 (A) | 92 (A) |
| Fair value estimate | $506.66 | $48.31 |
| Upside to fair value | -46% | -44% |
| Frequency | quarterly | quarterly |
| Market cap | $417.7B | $369.2B |
| P/E ratio | 45.1 | 25.8 |
Higher yield
KO
2.47%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
KO
-44% upside
COST vs KO — FAQ
Is COST or KO a better dividend stock?
On the data, COST wins more head-to-head categories (5 vs 3). KO offers the higher yield (2.47%), 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 KO?
KO has the higher forward dividend yield at 2.47%, versus 0.63% for COST.
Is COST or KO safer?
COST has the higher dividend-safety score (97/100 vs 92/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or KO better value right now?
As of Oct 8, 2026, KO looks like the better value: its fair-value estimate is 44% below its share price (overvalued). For COST, its fair-value estimate is 46% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.