SmarterDividends

COST vs UG: 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. UG offers the higher yield at 9.06%, COST has the higher dividend-safety score, and UG looks like the better value (its fair-value estimate is 19% above its share price).

Key facts: COST vs UG

Data as of · Source: SmarterDividends data

  • As of Oct 27, 2026, United-Guardian, Inc. (UG) has the higher forward dividend yield at 9.06%, versus 0.59% for Costco Wholesale Corporation (COST).
  • As of Oct 27, 2026, SmarterDividends grades COST's dividend safety A (97/100) and UG's D (45/100).
  • By SmarterDividends' count as of Oct 27, 2026, COST has raised its dividend for 21 consecutive years and UG for 0.
  • As of Oct 27, 2026, COST pays out 27% of its earnings as dividends and UG pays out 93%.
  • As of Oct 27, 2026, COST's fair-value estimate is 51% below its share price and UG's fair-value estimate is 19% above its share price, so UG looks like the better value of the two on SmarterDividends' blended model.
Cite this page

SmarterDividends, "COST vs UG: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/cost-vs-ug

MetricCOSTUG
Forward yield0.59%9.06%
Annual dividend$5.88$0.60
Payout ratio27%93%
Years of growth21 yr0 yr
5-yr dividend growth13.0%-5.1%
5-yr total return86%-58%
Dividend safety score97 (A)45 (D)
Fair value estimate$489.60$7.93
Upside to fair value-51%+19%
Frequencyquarterlysemiannual
Market cap$445.4B$30.5M
P/E ratio48.412.3

Higher yield

UG

9.06%

Safer dividend

COST

Grade A

Faster growth

COST

13.0%

Better value

UG

+19% upside

COST vs UG — FAQ

Is COST or UG a better dividend stock?

On the data, COST wins more head-to-head categories (6 vs 2). UG offers the higher yield (9.06%), 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 UG?

UG has the higher forward dividend yield at 9.06%, versus 0.59% for COST.

Is COST or UG safer?

COST has the higher dividend-safety score (97/100 vs 45/100), reflecting stronger payout coverage and dividend-growth history.

Is COST or UG better value right now?

As of Oct 27, 2026, UG looks like the better value: its fair-value estimate is 19% above its share price (undervalued). For COST, its fair-value estimate is 51% below its share price.

See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.