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Costco Wholesale Corporation (COST) logo

Costco Wholesale Corporation

S&P 500
COST|Consumer Defensive|Discount Stores|$1008.79|P/E 52.3|MCap 447.6B|NASDAQ

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

80/ 100Very Safe

COST's dividend appears very safe. Strengths include a 27.0% earnings payout ratio & 31.0% fcf payout ratio. Areas of concern: 3.7% operating margin & 12.8% gross margin.

Based on 14 of 15 metrics

Strengths

  • Earnings Payout Ratio: 27.0%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 31.0%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 16.2%Operating cash flow strongly supports the payout.

Risks

  • 5-Year Dividend CAGR: -16.9%Dividend growth has been weak or negative.
  • Operating Margin: 3.7%Operating margin is thin and pressures the dividend.
  • Gross Margin: 12.8%Gross margin is low and limits flexibility.

Payout & Coverage

Very Safe
Earnings Payout Ratio
27.0%Very Safe
FCF Payout Ratio
31.0%Very Safe
CFO Payout Ratio
16.2%Very Safe
Interest Coverage
71.2xVery Safe

Balance Sheet

Safe
Net Debt / Total Assets
N/AN/A
Current Ratio
1.1xCaution
Debt-to-Equity
60.3Very Safe

Profitability

Safe
Return on Equity
29.6%Very Safe
Operating Margin
3.7%Warning
Gross Margin
12.8%Warning
Profit Margin Stability
Very StableVery Safe

Dividend Track Record

Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
-16.9%Danger
Earnings Stability
GrowingVery Safe

About Costco Wholesale Corporation

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs, delivering high-quality goods and services at low prices to over 80 million members worldwide. Founded in 1983 and headquartered in Issaquah, Washington, the company manages approximately 910 warehouses across the United States (73% of revenue), Canada (13%), and international markets including Puerto Rico, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. Its merchandise spans sundries, dry groceries, candies, appliances, electronics, health and beauty aids, hardware, lawn and garden items, sporting goods, tires, toys, apparel, furniture, fresh foods like meat, produce, deli, and bakery products, plus ancillary services such as gasoline, pharmacies, optical centers, food courts, hearing aids, and tire installation. Costco Wholesale Corporation emphasizes its private-label Kirkland Signature brand and bulk purchasing model, achieving high member renewal rates of 93% in the US and Canada, and nearly 90% internationally. About 55% of fiscal 2025 revenue derives from groceries and 25% from general merchandise, solidifying its pivotal role in the discount retail sector through consistent value, quality, and operational efficiency.

Dividend Overview

Dividend Yield

0.53%

Annual Dividend

$5.37

Frequency

Quarterly

Payout Ratio

27.04%

FCF Payout Ratio

31.01%

Stock Price

$1008.79

52-Week Range

$844.06 $1067.08

Dividend History (2016–2025)

COST annual dividend per share and yield history

Earnings & Profitability

COST earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

May 1, 2026

Next Payment Date

May 15, 2026

Dividend Growth

3-Year Dividend CAGR

13.18%

5-Year Dividend CAGR

-16.88%

10-Year Dividend CAGR

-2.56%

3-Year Total Growth

44.99%

5-Year Total Growth

-60.31%

10-Year Total Growth

-22.81%

Income Calculator

COST Dividend Calculator

Total Investment

$100,879.00

Annual Income

$537.00

Quarterly Income

$134.25

Monthly Income

$44.75

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Frequently Asked Questions

What is COST's current dividend yield?
Costco Wholesale Corporation (COST) currently has a dividend yield of 0.53%, based on a stock price of $1008.79 and an annual dividend of $5.37.
When is COST's next dividend payment date?
COST's next ex-dividend date is 2026-05-01 and the next payment date is 2026-05-15. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does COST pay in dividends per year?
Costco Wholesale Corporation paid $5.06 per share in annual dividends in 2025. The dividends are paid quarterly.
Has COST been increasing its dividend?
Costco Wholesale Corporation has grown its dividend at a 5-year CAGR of -16.88% and a 10-year CAGR of -2.56%.
Is COST's dividend safe?
Costco Wholesale Corporation has a payout ratio of 27.04%. Its free cash flow payout ratio is 31.01%. A payout ratio below 60% is generally considered sustainable.
How is COST's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Costco Wholesale Corporation's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for consumer defensive companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.