Walmart and Costco both sell everyday goods at low prices, but they make money in different ways. Walmart earns a thin margin on a huge volume of sales. Costco keeps its markups very low and relies on membership fees for much of its profit.
Walmart vs Costco: Two Retailers, Two Models
Walmart and Costco are both defensive retailers that pay dividends. Compare the models, dividend records and what each one's risk is.
At a glance
Walmart Inc.
WMT
|
Costco Wholesale Corporation
COST
|
|
|---|---|---|
| Exchange | NASDAQ | NASDAQ |
| Sector | Consumer Staples | Consumer Staples |
| Industry | Retail and e-commerce | Warehouse club retail |
| Founded | 1962 | 1983 (roots to 1976) |
| Headquarters | Bentonville, Arkansas, USA | Issaquah, Washington, USA |
| Regular dividend | Yes | Yes |
| Dividend lists | Dividend Aristocrat, Dividend King | — |
| Full profile | Read the profile → | Read the profile → |
Price chart
Live data by TradingViewKey differences
Business model
Walmart runs supercentres, Sam's Club and a growing online and advertising business. Costco runs membership-only warehouse clubs.
Dividend record
Walmart has raised its dividend for more than 50 years in a row, making it a Dividend King. Costco raises its dividend regularly but has a shorter record.
Special dividends
Costco has occasionally paid large one-time special dividends in addition to its regular dividend. Walmart's record is built on its regular dividend.
Yield
Both usually have low yields compared with traditional income stocks.
Shared risks
Thin margins, competition, tariffs on imported goods and consumer spending.
What to check before choosing
- Do you value a long dividend streak, or a membership-driven model?
- How do the current yields and dividend growth rates compare?
- Do you already hold other retailers or consumer-staples companies?
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
Frequently asked questions
Which pays a higher dividend, Walmart or Costco?
Both have modest yields. Compare their current yields and growth on a quote page, as they change with price.
Is Costco a Dividend King?
Not yet. Its dividend record is shorter than the 50 years required.
What is a special dividend?
A one-time extra payment on top of the regular dividend. Do not count it as regular income.
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