SmarterDividends

COST vs UL: 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. UL offers the higher yield at 3.43%, COST has the higher dividend-safety score, and UL trades at the larger discount to fair value (+15%).

MetricCOSTUL
Forward yield0.66%3.43%
Annual dividend$5.88$2.12
Payout ratio27%77%
Years of growth21 yr3 yr
5-yr dividend growth13.0%1.9%
5-yr total return82%2%
Dividend safety score97 (A)55 (C)
Fair value estimate$441.82$71.00
Upside to fair value-51%+15%
Frequencyquarterlyquarterly
Market cap$397.1B$133.1B
P/E ratio45.021.2

Higher yield

UL

3.43%

Safer dividend

COST

Grade A

Faster growth

COST

13.0%

Better value

UL

+15% upside

COST vs UL — FAQ

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