COST vs KO: Which Is the Better Dividend Stock?
As of August 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 2.45%, COST has the higher dividend-safety score, and KO trades at the larger discount to fair value (-39%).
| Metric | COST | KO |
|---|---|---|
| Forward yield | 0.62% | 2.45% |
| 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 | 109% | 56% |
| Dividend safety score | 95 (A) | 92 (A) |
| Fair value estimate | $423.36 | $53.06 |
| Upside to fair value | -56% | -39% |
| Frequency | quarterly | quarterly |
| Market cap | $417.8B | $373.6B |
| P/E ratio | 47.6 | 26.0 |
Higher yield
KO
2.45%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
KO
-39% upside
COST vs KO — FAQ
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