COST vs TGT: Which Is the Better Dividend Stock?
As of September 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TGT offers the higher yield at 2.93%, COST has the higher dividend-safety score, and TGT trades at the larger discount to fair value (-16%).
| Metric | COST | TGT |
|---|---|---|
| Forward yield | 0.66% | 2.93% |
| Annual dividend | $5.88 | $4.64 |
| Payout ratio | 27% | 47% |
| Years of growth | 21 yr | 42 yr |
| 5-yr dividend growth | 13.0% | 11.0% |
| 5-yr total return | 82% | -39% |
| Dividend safety score | 97 (A) | 93 (A) |
| Fair value estimate | $441.82 | $132.75 |
| Upside to fair value | -51% | -16% |
| Frequency | quarterly | quarterly |
| Market cap | $397.1B | $71.9B |
| P/E ratio | 45.0 | 16.4 |
Higher yield
TGT
2.93%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
TGT
-16% upside
COST vs TGT — FAQ
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