COST vs TGT: Which Is the Better Dividend Stock?
As of Nov 6, 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 2.94%, COST has the higher dividend-safety score, and TGT looks like the better value (its fair-value estimate is 2% below its share price).
Key facts: COST vs TGT
Data as of · Source: SmarterDividends data
- As of Nov 6, 2026, Target Corporation (TGT) has the higher forward dividend yield at 2.94%, versus 0.55% for Costco Wholesale Corporation (COST).
- As of Nov 6, 2026, SmarterDividends grades COST's dividend safety A (97/100) and TGT's A (93/100).
- By SmarterDividends' count as of Nov 6, 2026, COST has raised its dividend for 21 consecutive years and TGT for 42.
- As of Nov 6, 2026, COST pays out 27% of its earnings as dividends and TGT pays out 47%.
- As of Nov 6, 2026, COST's fair-value estimate is 54% below its share price and TGT's fair-value estimate is 2% below its share price, so TGT looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs TGT: Dividend Yield, Safety & Value Compared," updated Nov 6, 2026, https://smarterdividends.com/compare/cost-vs-tgt
| Metric | COST | TGT |
|---|---|---|
| Forward yield | 0.55% | 2.94% |
| 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 | 88% | -37% |
| Dividend safety score | 97 (A) | 93 (A) |
| Fair value estimate | $491.02 | $155.41 |
| Upside to fair value | -54% | -2% |
| Frequency | quarterly | quarterly |
| Market cap | $472.2B | $71.8B |
| P/E ratio | 51.3 | 16.4 |
Higher yield
TGT
2.94%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
TGT
-2% upside
COST vs TGT — FAQ
Is COST or TGT a better dividend stock?
On the data, COST wins more head-to-head categories (5 vs 3). TGT offers the higher yield (2.94%), 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 TGT?
TGT has the higher forward dividend yield at 2.94%, versus 0.55% for COST.
Is COST or TGT safer?
COST has the higher dividend-safety score (97/100 vs 93/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or TGT better value right now?
As of Nov 6, 2026, TGT looks like the better value: its fair-value estimate is 2% below its share price (fairly valued). For COST, its fair-value estimate is 54% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.