COST vs PM: Which Is the Better Dividend Stock?
As of Nov 5, 2026, COST and PM are closely matched. PM offers the higher yield at 3.03%, COST has the higher dividend-safety score, and PM looks like the better value (its fair-value estimate is 26% below its share price).
Key facts: COST vs PM
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Philip Morris International Inc. (PM) has the higher forward dividend yield at 3.03%, versus 0.56% for Costco Wholesale Corporation (COST).
- As of Nov 5, 2026, SmarterDividends grades COST's dividend safety A (97/100) and PM's B (73/100).
- By SmarterDividends' count as of Nov 5, 2026, COST has raised its dividend for 21 consecutive years and PM for 13.
- As of Nov 5, 2026, COST pays out 27% of its earnings as dividends and PM pays out 88%.
- As of Nov 5, 2026, COST's fair-value estimate is 53% below its share price and PM's fair-value estimate is 26% below its share price, so PM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs PM: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cost-vs-pm
| Metric | COST | PM |
|---|---|---|
| Forward yield | 0.56% | 3.03% |
| Annual dividend | $5.88 | $6.40 |
| Payout ratio | 27% | 88% |
| Years of growth | 21 yr | 13 yr |
| 5-yr dividend growth | 13.0% | 3.5% |
| 5-yr total return | 88% | 143% |
| Dividend safety score | 97 (A) | 73 (B) |
| Fair value estimate | $491.02 | $156.61 |
| Upside to fair value | -53% | -26% |
| Frequency | quarterly | quarterly |
| Market cap | $463.7B | $329.3B |
| P/E ratio | 50.4 | 30.8 |
Higher yield
PM
3.03%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
PM
-26% upside
COST vs PM — FAQ
Is COST or PM a better dividend stock?
COST and PM are closely matched. PM has the higher yield; COST scores better on safety.
Which has a higher dividend yield, COST or PM?
PM has the higher forward dividend yield at 3.03%, versus 0.56% for COST.
Is COST or PM safer?
COST has the higher dividend-safety score (97/100 vs 73/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or PM better value right now?
As of Nov 5, 2026, PM looks like the better value: its fair-value estimate is 26% below its share price (overvalued). For COST, its fair-value estimate is 53% below its share price.
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