Stock Comparison
COST vs WMT: Everyday Supercenter, or a Paid Membership Club?
A head-to-head of Walmart and Costco covering retail mix, payout record, and scale.
Updated October 16, 2026
How these figures are calculated: methodology.
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
COST has lagged WMT over the trailing twelve months, posting a 7.48% total return against 12.53%. The picture flips over 10 years, though — COST has compounded at 22.79% a year, ahead of WMT at 19.92%. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD cumulative | 1Y cumulative | 3Y annualized | 5Y annualized | 10Y annualized | Since Nov 1985 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| COST | 15.21% | 7.48% | 21.61% | 18.19% | 22.79% | 18.16% | 20.5% | 0.75 | 1.06 | -20.7% |
| WMT | 7.32% | 12.53% | 31.64% | 21.96% | 19.92% | 15.25% | 23.3% | 1.00 | 1.43 | -23.3% |
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Nov 1985” measures every fund from November 27, 1985 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
| Metric |  COST |  WMT |
|---|---|---|
| Full name | Costco Wholesale Corporation | Walmart Inc. |
| Issuer | — | — |
| Last Close | $989.11 as of October 16, 2026 | $118.81 as of October 16, 2026 |
| Distribution rate | 0.59% | 0.83% |
| Trailing 12-month yield | 0.56% | 0.82% |
| Distribution Safety Score™ | 92 | 98 |
| Safety-Adjusted Yield | 0.54% | 0.81% |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Operates membership-only warehouse clubs offering a wide selection of merchandise at competitive prices. Sells branded and private-label products across food, sundries, hardlines, softlines, and fresh food categories. | Operates retail stores and e-commerce platforms worldwide. Segments include Walmart U.S., Walmart International, and Sam's Club, offering groceries, general merchandise, and financial services. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.87 | 0.578 |
| Last dividend | $1.47 | $0.2475 declared, pays 01/04/2027 |
| Ex-dividend date | 07/24/2026 | 12/11/2026 upcoming |
Bottom lineCOST and WMT are nearly interchangeable — both offer very similar consumer staples exposure with very similar cost and risk. Neither charges a fund expense ratio, so the decision rests on business fundamentals, payout history, and valuation.
WMT vs COST: supercenter or warehouse club?
Both are US retailers that pay quarterly. Walmart is a Dividend King; Costco is a membership warehouse with a smaller regular payout.
| COST | WMT | |
|---|---|---|
| Format | General merchandise supercenter | Membership warehouse |
| Payout | Quarterly dividend | Quarterly dividend |
| Distribution rate | 0.59% | 0.83% |
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Quick verdict
COST (Costco Wholesale Corporation) and WMT (Walmart Inc.) are both quarterly-pay dividend-paying stocks, but they take different approaches.
WMT offers the higher yield at 0.83% vs 0.59% for COST. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, COST would generate roughly $14.75 cash per distribution, while WMT would produce $20.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
COST is a stock built around consumer staples exposure, while WMT is a stock built around retail exposure. Beta is 0.87 for COST and 0.578 for WMT, making WMT the less volatile of the two by this measure.
Security details
COST (Costco Wholesale Corporation) is a stock. WMT (Walmart Inc.) is a stock.
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Frequently asked questions
What is the difference between WMT and COST for dividends?
Both are US retailers that pay a quarterly dividend. COST (Costco Wholesale Corporation) distributes 0.59% and WMT (Walmart Inc.) distributes 0.83% as of October 2026. Walmart is a Dividend King supercenter; Costco is a membership warehouse with a smaller regular payout. Compare mix and payout record, not a one-date yield race.
What is the current distribution rate for COST and WMT?
COST currently distributes 0.59% and WMT 0.83%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is COST or WMT better for dividend income?
It depends on your goals. WMT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between COST and WMT?
COST (Costco Wholesale Corporation) is a stock built around consumer staples exposure, while WMT (Walmart Inc.) is a stock built around retail exposure. They are issued by — and — respectively.
Can I hold both COST and WMT?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is COST or WMT safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — WMT scores 98, COST scores 92, so WMT's payout currently looks the more resilient of the two. WMT has also shown lower price volatility (beta 0.58 vs 0.87 for COST). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in COST vs WMT generate?
At current rates, $10,000 in COST would generate roughly $14.75 cash per distribution ($59.00 annually). The same in WMT would produce about $20.75 cash per distribution ($83.00 annually).
Which has performed better historically, COST or WMT?
COST has lagged WMT over the trailing twelve months, posting a 7.48% total return against 12.53%. The picture flips over 10 years, though — COST has compounded at 22.79% a year, ahead of WMT at 19.92%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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COST vs WMT — at a glance
Generated October 17, 2026.
Overview
Costco and Walmart are both mature consumer-staples retailers with long track records and modest dividend yields, but they operate under fundamentally different business models. Costco runs a membership-only warehouse format with higher price points and tighter margins, while Walmart operates traditional retail stores and e-commerce globally, competing partly on volume and lower prices. The key distinction is their leverage and defensive profile: Walmart has a meaningfully lower beta, suggesting it dampens downside moves more effectively during market stress.
How they differ
The first and largest difference is structure and customer model. Costco requires paid membership, which creates upfront revenue and increases customer loyalty; Walmart serves the general public with no membership friction, generating volume through accessibility and price competitiveness. Second, Walmart's beta of 0.578 is substantially lower than Costco's 0.87, meaning Walmart has historically moved less sharply than the broader market during downturns—a meaningful advantage for investors seeking stability. Third, Walmart's distribution yield of 0.83% exceeds Costco's 0.59% by 0.24%, though both yields remain modest, and Walmart has been paying dividends since 1974, versus Costco's more recent history. Costco trades at a much higher absolute price of $989.11 per share, while Walmart's $118.81 offers lower nominal entry cost.
Who each is best for
COST: Fits investors who prioritize growth-oriented exposure within consumer staples and can tolerate slightly higher volatility for exposure to a brand with strong pricing power and member-driven resilience. Suited to long-term accumulation portfolios where the modest dividend is secondary to capital appreciation.
WMT: Fits investors seeking a defensive consumer-staples position with lower portfolio swing and a higher current yield, particularly those building a dividend ladder or seeking to reduce downside capture during economic slowdowns. Designed for balanced allocations where stability and income consistency matter.
Key risks to know
- Membership-model dependence (COST): Costco's business relies on renewal rates and member growth. Economic downturns that cause households to drop memberships can create near-term headwinds, compressing revenue visibility.
- E-commerce and wage pressure (both): Both retailers face ongoing margin pressure from e-commerce competition and wage inflation in fulfillment and store labor. Profitability growth may lag revenue growth if pricing power weakens.
- Relative price discipline: Walmart's lower beta suggests it has weathered recessions better historically, but this does not guarantee future performance. Both stocks can still decline sharply in a severe downturn; lower beta is a tendency, not a cushion.
- Dividend maturity (both): Neither stock offers a compelling income yield. Investors relying on these securities primarily for dividend income will collect modest cash distributions relative to the price paid.
Bottom line
If you value stability and higher current yield, Walmart's lower beta and 0.83% payout stand out; if you're comfortable with slightly more volatility in exchange for growth-focused exposure and a membership-driven moat, Costco's model and brand momentum merit consideration. Both are core consumer-staples holdings rather than income vehicles, and past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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These comparisons follow the Dividend Vision methodology.