COST vs MO: Which Is the Better Dividend Stock?
As of Oct 27, 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. MO offers the higher yield at 6.03%, COST has the higher dividend-safety score, and MO looks like the better value (its fair-value estimate is 17% above its share price).
Key facts: COST vs MO
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Altria Group, Inc. (MO) has the higher forward dividend yield at 6.03%, versus 0.59% for Costco Wholesale Corporation (COST).
- As of Oct 27, 2026, SmarterDividends grades COST's dividend safety A (97/100) and MO's B (77/100).
- By SmarterDividends' count as of Oct 27, 2026, COST has raised its dividend for 21 consecutive years and MO for 17.
- As of Oct 27, 2026, COST pays out 27% of its earnings as dividends and MO pays out 89%.
- As of Oct 27, 2026, COST's fair-value estimate is 51% below its share price and MO's fair-value estimate is 17% above its share price, so MO looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs MO: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/cost-vs-mo
| Metric | COST | MO |
|---|---|---|
| Forward yield | 0.59% | 6.03% |
| Annual dividend | $5.88 | $4.44 |
| Payout ratio | 27% | 89% |
| Years of growth | 21 yr | 17 yr |
| 5-yr dividend growth | 13.0% | 4.1% |
| 5-yr total return | 86% | 74% |
| Dividend safety score | 97 (A) | 77 (B) |
| Fair value estimate | $489.60 | $85.84 |
| Upside to fair value | -51% | +17% |
| Frequency | quarterly | quarterly |
| Market cap | $445.4B | $122.9B |
| P/E ratio | 48.4 | 15.5 |
Higher yield
MO
6.03%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
MO
+17% upside
COST vs MO — FAQ
Is COST or MO a better dividend stock?
On the data, COST wins more head-to-head categories (6 vs 2). MO offers the higher yield (6.03%), 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 MO?
MO has the higher forward dividend yield at 6.03%, versus 0.59% for COST.
Is COST or MO safer?
COST has the higher dividend-safety score (97/100 vs 77/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or MO better value right now?
As of Oct 27, 2026, MO looks like the better value: its fair-value estimate is 17% 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.