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 $382.33 and the overvaluation threshold at $960.90. 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 59.5% downside to reach the Weiss buy zone
Undervaluation starts near $382.33, where the annual dividend would imply roughly 1.21% yield. That is 0.72% above today's yield.
Buy-zone price
$382.33
Target yield
1.21%
Research checklist
What to clear before buying the yield
Updated Oct 7, 2026
Dividend durability
1YVerify the dividend record before treating yield as durable.
Earnings payout
27%Earnings coverage leaves room for noise.
Cash payout
36%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
2026-10-06 → 2026-10-07
Price
+2.1%$924.51 → $943.92
Price rose 2.1% since the prior snapshot.
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
0.52%
Total Income
$503
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
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In-depth analysis
→ COST Dividend Analysis Article