COST vs LW: Which Is the Better Dividend Stock?
As of Oct 18, 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. LW offers the higher yield at 2.84%, COST has the higher dividend-safety score, and LW looks like the better value (its fair-value estimate is 26% below its share price).
Key facts: COST vs LW
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Lamb Weston Holdings, Inc. (LW) has the higher forward dividend yield at 2.84%, versus 0.59% for Costco Wholesale Corporation (COST).
- As of Oct 18, 2026, SmarterDividends grades COST's dividend safety A (97/100) and LW's B (71/100).
- By SmarterDividends' count as of Oct 18, 2026, COST has raised its dividend for 21 consecutive years and LW for 8.
- As of Oct 18, 2026, COST pays out 27% of its earnings as dividends and LW pays out 83%.
- As of Oct 18, 2026, COST's fair-value estimate is 51% below its share price and LW's fair-value estimate is 26% below its share price, so LW looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs LW: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/cost-vs-lw
| Metric | COST | LW |
|---|---|---|
| Forward yield | 0.59% | 2.84% |
| Annual dividend | $5.88 | $1.52 |
| Payout ratio | 27% | 83% |
| Years of growth | 21 yr | 8 yr |
| 5-yr dividend growth | 13.0% | 10.0% |
| 5-yr total return | 83% | 3% |
| Dividend safety score | 97 (A) | 71 (B) |
| Fair value estimate | $487.61 | $39.40 |
| Upside to fair value | -51% | -26% |
| Frequency | quarterly | quarterly |
| Market cap | $438.3B | $7.4B |
| P/E ratio | 47.6 | 29.3 |
Higher yield
LW
2.84%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
LW
-26% upside
COST vs LW — FAQ
Is COST or LW a better dividend stock?
On the data, COST wins more head-to-head categories (6 vs 2). LW offers the higher yield (2.84%), 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 LW?
LW has the higher forward dividend yield at 2.84%, versus 0.59% for COST.
Is COST or LW safer?
COST has the higher dividend-safety score (97/100 vs 71/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or LW better value right now?
As of Oct 18, 2026, LW looks like the better value: its fair-value estimate is 26% below its share price (overvalued). 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.