COST vs SJM: Which Is the Better Dividend Stock?
As of September 2026, COST (Costco Wholesale Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. SJM offers the higher yield at 3.70%, COST has the higher dividend-safety score, and SJM trades at the larger discount to fair value (-14%).
| Metric | COST | SJM |
|---|---|---|
| Forward yield | 0.65% | 3.70% |
| Annual dividend | $5.88 | $4.48 |
| Payout ratio | 27% | 206% |
| Years of growth | 21 yr | 24 yr |
| 5-yr dividend growth | 13.0% | 4.1% |
| 5-yr total return | 82% | 0% |
| Dividend safety score | 97 (A) | 88 (A) |
| Fair value estimate | $441.82 | $105.82 |
| Upside to fair value | -51% | -14% |
| Frequency | quarterly | quarterly |
| Market cap | $401.2B | $13.1B |
| P/E ratio | 45.3 | 56.9 |
Higher yield
SJM
3.70%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
SJM
-14% upside
COST vs SJM — FAQ
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