Costco Wholesale Corporation
COSTCostco Wholesale Corporation (COST) is a Consumer Defensive company that currently yields 0.49% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $373.50 and the overvaluation threshold at $959.41. Costco Wholesale Corporation holds a quality score of 40/100 (Average), reflecting 1 consecutive years of dividend growth with a 27% payout ratio. The 5-year dividend CAGR stands at -15.9%.
COST Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 60.8% downside to reach the Weiss buy zone
Undervaluation starts near $373.50, where the annual dividend would imply roughly 1.24% yield. That is 0.76% above today's yield.
Buy-zone price
$373.50
Target yield
1.24%
Research checklist
What to clear before buying the yield
Updated Jul 9, 2026
Dividend durability
1YVerify the dividend record before treating yield as durable.
Earnings payout
27%Earnings coverage leaves room for noise.
Cash payout
37%Free cash flow coverage supports the payment.
Dividend growth
-15.9%Lower growth changes the return trade-off.
What changed
What changed since the last update
2026-07-08 → 2026-07-09
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Costco Wholesale Corporation is trading near its historical overvaluation band.
Current yield 0.5% vs historical max 1.4% (35% of maximum).
Recent dividend history shows no sustained growth streak.
Conservative payout ratio of 27%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 40/100 quality score says the headline yield needs extra skepticism.
Start by checking whether payout coverage and business durability still support the dividend.
COST Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$49
Year 10 Income
$51
Yield on Cost
0.51%
Total Income
$498
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
See what COST dividends you actually received with Sharesight
Dividend income log · Yield on cost · DRIP cost basis · Tax reports
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗COST Dividend Quality Score
Quality Score
Average
Key Metrics
Invest in COST
Buy Costco Wholesale Corporation commission-free on eToro
Start investing on eToro →DividendVisual may earn a commission if you open an account via this link, at no cost to you. Capital at risk. Not financial advice.
In-depth analysis
→ COST Dividend Analysis Article