COST vs MO: Which Is the Better Dividend Stock?
As of September 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 6.45%, COST has the higher dividend-safety score, and MO trades at the larger discount to fair value (+47%).
| Metric | COST | MO |
|---|---|---|
| Forward yield | 0.65% | 6.45% |
| 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 | 101% | 52% |
| Dividend safety score | 95 (A) | 80 (A) |
| Fair value estimate | $426.55 | $101.29 |
| Upside to fair value | -53% | +47% |
| Frequency | quarterly | quarterly |
| Market cap | $401.2B | $115.2B |
| P/E ratio | 45.5 | 14.5 |
Higher yield
MO
6.45%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
MO
+47% upside
COST vs MO — FAQ
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