COST vs MO: Which Is the Better Dividend Stock?
As of June 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 5.89%, COST has the higher dividend-safety score, and MO trades at the larger discount to fair value (+44%).
| Metric | COST | MO |
|---|---|---|
| Forward yield | 0.60% | 5.89% |
| Annual dividend | $5.88 | $4.24 |
| Payout ratio | 27% | 88% |
| Years of growth | 21 yr | 17 yr |
| 5-yr dividend growth | 13.2% | 4.1% |
| 5-yr total return | 148% | 51% |
| Dividend safety score | 95 (A) | 80 (A) |
| Fair value estimate | $425.48 | $103.94 |
| Upside to fair value | -57% | +44% |
| Frequency | quarterly | quarterly |
| Market cap | $435.7B | $120.1B |
| P/E ratio | 49.5 | 15.0 |
Higher yield
MO
5.89%
Safer dividend
COST
Grade A
Faster growth
COST
13.2%
Better value
MO
+44% upside
COST vs MO — FAQ
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.