Walmart is a Dividend King with 52 straight years of raises, while Costco pays a modest ordinary dividend plus rare, large special dividends that can dwarf a year of regular payouts. This guide compares WMT and COST on yield, reliability, and total income, then shows you how to track ordinary versus special dividends and forecast annual income inside PortfolioTrackr.
Walmart or Costco: which dividend stock pays you more?
Walmart (WMT) pays you more reliable, predictable income, while Costco (COST) pays you more total cash in the years it declares a special dividend. Walmart's forward yield sits near 0.9% after decades of increases, while Costco's ordinary yield is roughly 0.5%, topped up occasionally by specials of $10 to $15 per share.
The right pick depends on whether you value steady, forecastable income or are willing to hold for lumpy, larger payouts. Both are low-yield names, so neither is a pure income play the way a bank stock or REIT would be.
What is a Dividend King, and why does Walmart qualify?
A Dividend King is a company that has raised its dividend for at least 50 consecutive years. Walmart qualifies with over 52 years of uninterrupted annual increases, placing it in an elite group of fewer than 55 US companies.
This status matters because it signals durable cash flow and management discipline across recessions, inflation spikes, and retail disruption. For income investors, a Dividend King offers a high probability that your payout grows every year, which compounds over decades.
- Consistency: Walmart has never cut or frozen its dividend in 5 decades.
- Growth rate: Recent hikes have run around 9% to 13% annually.
- Payout ratio: Well under 40%, leaving room for future raises.
How does Costco's special dividend actually work?
Costco's special dividend is a one-time, discretionary cash payout declared on top of its regular quarterly dividend, funded by excess cash on the balance sheet. Costco has issued five specials since 2012, ranging from $7 to $15 per share, with the most recent $15 special paid in January 2024.
Ordinary vs special dividends: the key difference
An ordinary dividend is a recurring, scheduled payment you can forecast, while a special dividend is irregular and cannot be relied on for planning. Costco's ordinary quarterly dividend is around $1.16 per share, but a single special can equal three years or more of that ordinary stream.
- Ordinary dividend: Predictable, used to forecast annual income.
- Special dividend: Lumpy, one-off, excluded from reliable income forecasts.
- Tax treatment: Both are typically taxed as dividend income, but timing differs and can complicate your year-end reporting.
If you're building an income plan, tracking these separately is essential. Our guide on how much dividend income your portfolio will pay this year walks through why special payouts should never be baked into your baseline forecast.
WMT vs COST: a side-by-side dividend comparison
Walmart wins on yield and reliability, while Costco wins on capital appreciation and occasional windfall cash. Here is how the two names stack up for an income-focused investor.
| Metric | Walmart (WMT) | Costco (COST) |
|---|---|---|
| Forward yield | ~0.9% | ~0.5% ordinary |
| Dividend status | Dividend King (52+ yrs) | 21+ yrs of raises |
| Special dividends | None | 5 since 2012 ($7 to $15) |
| Income predictability | High | Moderate |
Neither stock is a high-yield play. If income is your primary goal, compare both against alternatives like the ones in our CDs versus dividend stocks after-tax yield breakdown, where a 4.35% CD often out-earns a 0.9% dividend stock on pure cash flow.
How do you track ordinary vs special dividends in PortfolioTrackr?
In PortfolioTrackr, ordinary and special dividends are logged as separate transaction types so your income forecast stays accurate. When Costco declares a special, you tag it as a one-off, which keeps it out of your recurring annual income projection while still counting it in total realized cash.
Setting it up
- Log WMT and COST holdings with share count and cost basis.
- Mark each dividend as ordinary or special at entry.
- PortfolioTrackr handles this by pulling ex-dates and payment dates automatically once your broker is connected.
If you hold across multiple brokers, say Interactive Brokers for US stocks and Charles Schwab for a separate account, connecting both gives you one unified income view. See our walkthrough on connecting your brokerage account to a portfolio tracker to consolidate everything.
How do you forecast annual dividend income from WMT and COST?
Forecast your annual income by multiplying each holding's share count by the forward ordinary dividend rate, then excluding specials entirely from the baseline. For Walmart, that is roughly shares x $0.83 per year, and for Costco, roughly shares x $4.64 per year on the ordinary quarterly rate.
Here is a worked example for a $20,000 split evenly between the two:
- WMT: $10,000 buys about 100 shares, yielding roughly $83 per year.
- COST: $10,000 buys about 10 shares, yielding roughly $46 per year ordinary.
- Combined baseline: around $129 per year, before any Costco special.
A single Costco special of $15 per share on 10 shares adds $150 in one shot, more than your entire ordinary income for the year. That is the lumpiness you plan around, not with. Tracking ex-dates is critical here, and our guide on tracking yields and ex-dates shows how to avoid missing a payout by buying too late.
Which stock fits your income allocation better?
Choose Walmart if you want predictable, growing income you can budget around, and Costco if you prioritize share price growth with occasional cash windfalls. Most income investors treat both as growth-with-a-dividend rather than yield engines.
- Retiree drawing income: WMT's reliability suits a spending plan better.
- Long-horizon compounder: COST's price appreciation has historically outpaced WMT.
- Diversified income sleeve: Pair either with higher-yield names to lift your blended yield.
Because both yields are low, many investors anchor their income sleeve with dividend ETFs instead. Our comparison of VIG versus VYM dividend ETFs covers growth-focused versus high-yield fund choices that pair well with single names like WMT.
The bottom line
Walmart is the better pure dividend stock thanks to its Dividend King status, 52 years of raises, and a higher, more forecastable 0.9% yield. Costco delivers more total cash in special-dividend years but its 0.5% ordinary yield makes it a growth stock that happens to pay dividends.
Whichever you own, the discipline that matters most is separating reliable ordinary income from unpredictable specials in your forecast. PortfolioTrackr keeps those two streams distinct so your projected annual income stays honest and your total return stays complete.
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Frequently asked questions
Is Walmart a Dividend King in 2026?
Yes, Walmart is a Dividend King with over 52 consecutive years of annual dividend increases. This places it among fewer than 55 US companies that have raised payouts for at least 50 straight years, signaling durable cash flow through recessions and retail disruption.
How often does Costco pay a special dividend?
Costco has no fixed schedule for special dividends and has paid just five since 2012, ranging from $7 to $15 per share. They are discretionary, funded by excess cash, and cannot be relied on for income planning, so exclude them from any baseline forecast.
What is the difference between ordinary and special dividends?
An ordinary dividend is a recurring, scheduled payment you can forecast, while a special dividend is a one-time, irregular payout. Ordinary dividends drive your annual income projection; specials are windfalls that should be tracked separately and never baked into your baseline plan.
Does Walmart or Costco have a higher dividend yield?
Walmart has the higher yield at roughly 0.9% forward, compared to Costco's ordinary yield of about 0.5%. However, a single Costco special dividend can add $10 to $15 per share, temporarily exceeding several years of its ordinary payout in one payment.
How do I track special dividends separately in PortfolioTrackr?
In PortfolioTrackr you tag each dividend as ordinary or special at entry, which keeps one-off payouts out of your recurring income forecast while still counting them in total realized cash. Connect your broker and ex-dates plus payment dates populate automatically for accurate reporting.