Computed head-to-head · 6 dimensions
COST vs TGT
Costco Wholesale Corp versus Target Corporation — yield, safety, growth trend, cost, scale, and tax treatment.
COST wins 2–1 on our six-dimension comparison, but TGT can still be the better fit depending on your priorities — see each dimension below.
COST or TGT — which is better?
COST wins this comparison 2–1 across 6 dimensions. COST yields 0.56% — lower than TGT's 3.11% — and carries a 8.3/10 dividend safety score (Strong) vs 8.3/10 for TGT (Strong). COST wins 2–1 on our six-dimension comparison, but TGT can still be the better fit depending on your priorities — see each dimension below.
On yield alone, TGT generates 3.11% vs 0.56% — a 2.55% difference that translates to $2,550 more per year on a $100,000 investment.
Scorecard at a glance
| Dimension | COST | TGT | Winner |
|---|---|---|---|
| Yield | 0.56% | 3.11% | TGT wins |
| Dividend safety | 8.3/10 | 8.3/10 | Tie |
| Growth trend | -0.04% vs 5y | +0.32% vs 5y | COST wins |
| Volatility (beta) | 0.91 | 0.98 | Tie |
| Scale | $465.4B | $69.0B | COST wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 2 wins | 1 wins | COST wins |
Dimension by dimension
TGT wins on yield (3.11% vs 0.56%)
On a $10,000 investment that's about $255 more in annual dividend income before taxes — though higher yield often comes with higher risk.
TGT's higher yield (3.11%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus COST's 0.56% — especially if the higher yield is driven by covered calls or a falling share price.
Safety scores are too close to call (8.3/10 vs 8.3/10)
Both score within 0.3 points on our 0-10 dividend safety scale — comparable risk profiles on the signals we measure.
COST shows healthier dividend-vs-price trend
COST's yield is 0.04% below its 5y average, versus 0.32% for TGT. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
Volatility (beta) is similar
Both tickers move with comparable sensitivity to the broader market.
COST is 6.7× larger by market cap
Larger companies tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Full breakdown per ticker: are COST dividends qualified and are TGT dividends qualified — each with the after-tax income at every federal bracket.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice. Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
COST or TGT — which is better?
COST is better on our scoring, winning 2–1 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. COST wins 2–1 on our six-dimension comparison, but TGT can still be the better fit depending on your priorities — see each dimension below.
Which is better for income, COST or TGT?
COST wins 2–1 on our six-dimension comparison, but TGT can still be the better fit depending on your priorities — see each dimension below.
COST vs TGT: which has a higher dividend yield?
COST yields 0.56% and TGT yields 3.11%. On a $10,000 investment that's about $255 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is COST or TGT a safer dividend in 2026?
COST scores 8.3/10 (Strong) on the Infnits dividend safety scale. TGT scores 8.3/10 (Strong). Both have comparable safety scores.
Which has better dividend growth, COST or TGT?
COST's yield is 0.04% below its 5y average, versus 0.32% for TGT. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
COST vs TGT: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Get emailed when COST vs TGT data updates.
Compare both against your actual holdings
Put COST and TGT into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding COST diversifies you or just duplicates what you hold. No account, no download.