COST vs PM: Which Is the Better Dividend Stock?
As of July 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 5 of 7 head-to-head metrics. PM offers the higher yield at 2.94%, COST has the higher dividend-safety score, and PM trades at the larger discount to fair value (-11%).
| Metric | COST | PM |
|---|---|---|
| Forward yield | 0.61% | 2.94% |
| 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 | 105% | 87% |
| Dividend safety score | 95 (A) | 72 (B) |
| Fair value estimate | $423.64 | $172.70 |
| Upside to fair value | -55% | -11% |
| Frequency | quarterly | quarterly |
| Market cap | $432.0B | $309.3B |
| P/E ratio | 48.5 | 27.5 |
Higher yield
PM
2.94%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
PM
-11% upside
COST vs PM — FAQ
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