Costco Wholesale Corporation
COSTCostco Wholesale Corporation (COST) is a Consumer Defensive company that currently yields 0.45% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $370.38 and the overvaluation threshold at $957.66. 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 64.0% downside to reach the Weiss buy zone
Undervaluation starts near $370.38, where the annual dividend would imply roughly 1.25% yield. That is 0.80% above today's yield.
Buy-zone price
$370.38
Target yield
1.25%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
1YVerify the dividend record before treating yield as durable.
Earnings payout
27%Earnings coverage leaves room for noise.
Cash payout
39%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
2026-05-23 → 2026-05-25
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% (32% 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
$45
Year 10 Income
$47
Yield on Cost
0.47%
Total Income
$461
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗COST Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
→ COST Dividend Analysis Article