BABB vs COST: Which Is the Better Dividend Stock?
As of July 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. BABB offers the higher yield at 4.78%, COST has the higher dividend-safety score, and BABB trades at the larger discount to fair value (+22%).
| Metric | BABB | COST |
|---|---|---|
| Forward yield | 4.78% | 0.62% |
| Annual dividend | $0.04 | $5.88 |
| Payout ratio | 50% | 27% |
| Years of growth | 0 yr | 21 yr |
| 5-yr dividend growth | 0.0% | 13.0% |
| 5-yr total return | 14% | 107% |
| Dividend safety score | 73 (B) | 95 (A) |
| Fair value estimate | $1.02 | $422.97 |
| Upside to fair value | +22% | -55% |
| Frequency | quarterly | quarterly |
| Market cap | $6.0M | $415.0B |
| P/E ratio | 10.4 | 47.4 |
Higher yield
BABB
4.78%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
BABB
+22% upside
BABB vs COST — FAQ
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