COST vs MO: 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. MO offers the higher yield at 5.67%, COST has the higher dividend-safety score, and MO trades at the larger discount to fair value (+42%).
| Metric | COST | MO |
|---|---|---|
| Forward yield | 0.61% | 5.67% |
| Annual dividend | $5.88 | $4.24 |
| Payout ratio | 27% | 88% |
| Years of growth | 21 yr | 17 yr |
| 5-yr dividend growth | 13.0% | 4.1% |
| 5-yr total return | 105% | 45% |
| Dividend safety score | 95 (A) | 80 (A) |
| Fair value estimate | $423.64 | $103.49 |
| Upside to fair value | -55% | +42% |
| Frequency | quarterly | quarterly |
| Market cap | $432.0B | $125.1B |
| P/E ratio | 48.5 | 15.6 |
Higher yield
MO
5.67%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
MO
+42% upside
COST vs MO — FAQ
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