COST vs LW: Which Is the Better Dividend Stock?
As of August 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 2.87%, COST has the higher dividend-safety score, and LW trades at the larger discount to fair value (+1%).
| Metric | COST | LW |
|---|---|---|
| Forward yield | 0.62% | 2.87% |
| Annual dividend | $5.88 | $1.52 |
| Payout ratio | 27% | 72% |
| Years of growth | 21 yr | 8 yr |
| 5-yr dividend growth | 13.0% | 10.0% |
| 5-yr total return | 109% | -19% |
| Dividend safety score | 95 (A) | 71 (B) |
| Fair value estimate | $423.36 | $53.23 |
| Upside to fair value | -56% | +1% |
| Frequency | quarterly | quarterly |
| Market cap | $417.8B | $7.3B |
| P/E ratio | 47.6 | 25.6 |
Higher yield
LW
2.87%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
LW
+1% upside
COST vs LW — FAQ
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