Costco Wholesale Corporation
S&P 500Last update: May 9, 2026 at 09:32
Dividend Safety Rating
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 SafeBalance Sheet
SafeProfitability
SafeDividend Track Record
SafeAbout 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%
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Frequently Asked Questions
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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.