COST vs PM: Which Is the Better Dividend Stock?
As of September 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. PM offers the higher yield at 3.08%, COST has the higher dividend-safety score, and PM trades at the larger discount to fair value (-9%).
| Metric | COST | PM |
|---|---|---|
| Forward yield | 0.65% | 3.08% |
| Annual dividend | $5.88 | $5.88 |
| Payout ratio | 27% | 81% |
| Years of growth | 21 yr | 13 yr |
| 5-yr dividend growth | 13.0% | 3.5% |
| 5-yr total return | 101% | 102% |
| Dividend safety score | 95 (A) | 72 (B) |
| Fair value estimate | $426.55 | $173.73 |
| Upside to fair value | -53% | -9% |
| Frequency | quarterly | quarterly |
| Market cap | $401.2B | $297.8B |
| P/E ratio | 45.5 | 26.2 |
Higher yield
PM
3.08%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
PM
-9% upside
COST vs PM — FAQ
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