Stock · Consumer Defensive
COST Costco Wholesale Corp
Costco Wholesale Corp scores well across yield, structure, and size — a typical strong-safety profile.
Why we rate it 8.3
- Low yield of 0.56% — typical of growth-tilted stocks
- Payout ratio of 27% leaves significant room to grow the dividend or absorb earnings dips
- Current yield is in line with the 5-year average of 0.60%
- Mega-cap scale (>$200B) — market dominance reduces dividend pressure
Where COST ranks
We compute the same 0–10 safety score across 53 dividend-paying stocks and ETFs. Here's where COST lands inside that universe.
The universe is curated to the most-searched US dividend payers. We'll expand it as the data layer grows; sector percentiles only appear when we have at least 5 comparable peers.
The two questions a safety score doesn't answer
A safety score tells you how durable COST's payout looks. It does not tell you what you keep after tax, or whether something else does the same job better.
On tax: what you actually pocket depends on whether COST dividends are qualified — qualified distributions are taxed at 0%, 15%, or 20%, while ordinary ones are taxed at your full marginal rate, a gap that can reach 22 percentage points of the income on the same headline yield.
On substitutes: if COST's 8.3/10 score is lower than you want, see COST alternatives — same-sector stocks ranked by how closely they match COST on both yield and safety, so you can see what a swap actually costs you.
About Costco Wholesale Corp
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; non-food merchandise comprising appliances, small electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, service deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
How we score dividend safety
The Infnits dividend safety score is a 0–10 rating derived from yield zone, payout ratio (when applicable), yield trend versus 5-year average, instrument type, and company size. Each factor is independently transparent — see the reasons above for exactly which factors contributed to COST's score.
For the full methodology including the in-app version that uses ETF look-through and historical cut data, see our methodology page.
This is educational, not investment advice. Dividend safety scores reflect a snapshot of public data on the "as of" date shown. Verify current data on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked questions
Is COST safe?
On dividend safety specifically, Infnits scores COST 8.3/10 — strong. Costco Wholesale Corp scores well across yield, structure, and size — a typical strong-safety profile. That score measures how durable the payout looks based on yield zone, payout ratio, yield trend, and instrument type; it does not measure price risk, valuation, or whether COST suits your portfolio.
Is COST's dividend safe?
Based on snapshot data — yield 0.56%, payout ratio 27%, instrument type stock — Infnits rates COST's dividend safety profile as strong (8.3/10). This is one signal, not a recommendation.
What is COST's current dividend yield?
COST has a current dividend yield of 0.56% as of May 16, 2026. Its 5-year average yield is 0.60%.
How is COST's safety score calculated?
The score combines yield zone (yields above 7% historically carry elevated cut risk), payout ratio (lower is safer), trend vs. 5-year average yield, instrument type (ETFs are inherently more diversified), and size (larger companies have more stable cash flows). Each factor is scored 0-2.5 and summed to a 0-10 result.
Where does this data come from?
Fundamentals are sourced from public market data and refreshed regularly. The "as of" date on each page reflects the snapshot used for the score. For real-time data, check the issuer's investor relations page or your brokerage.
Should I buy COST based on this score?
No — this is an educational score based on a handful of public signals, not investment advice. Use it as one input among many. For a portfolio-aware analysis with ETF look-through and personalized insights, install the Infnits app.
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COST head-to-head comparisons
See COST compared side-by-side with the most-searched peer tickers — yield, safety, growth trend, expense ratio, and tax treatment.
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