2 Top Dividend Stocks Duke It Out: Costco vs. Alphabet

Dividend investors often gravitate toward high-yielding sectors like utilities and telecoms, but sometimes the most compelling opportunities lie in low-payout stocks with robust growth potential. Costco (COST) and Alphabet (GOOGL) exemplify this paradox—both offer sub-1% yields but boast exceptional dividend trajectories.

Costco’s dividend reliability is legendary. With a payout ratio below 30%, the wholesale retailer has raised its dividend annually for over two decades, including a recent 13% hike to $1.30 per quarter. Its occasional special dividends add further allure. Meanwhile, Alphabet’s newly initiated dividend signals confidence in its cash-rich business model, trading at a discount to big tech peers.

The showdown hinges on priorities: Costco delivers predictable income, while Alphabet offers growth at a bargain valuation. Neither stock directly intersects with cryptocurrency markets, but their cash-flow dominance underscores why traditional equities remain core to diversified portfolios—even in the digital asset era.