Costco Stock is a Dividend Growth Stock
COST stock has rewarded its shareholders over the past decade or so. The dividend has increased nine out of those 10 years. This has created a dividend payout rate of 346 percent. Currently COST stock pays our $0.45 quarterly (a yield of 1.2 percent).
That is a handsome payout for shareholders and it doesn’t include any special dividends that have been paid out. In January of 2015, for instance, there was a special payout of $5.00. Likewise, in November 2012, a special dividend payout of $7.00 was made. To add to the “awesome” that is Costco stock, each of these special payouts were paid due to the overall geographical diversification and growth of the business.
At the end of August COST stock reported net sales of $35.7 billion for fourth quarter. Most Costco shareholders are not surprised though. Costco stock has been a dividend growth stock that most investors own for a long period of time.
Costco Stock Projections
Costco, like any other company, has had it low points. Most recently the company experienced a low due to the credit card switchover (read about how Costco stock was affected). The wholesale retailer relies on member fees to stay afloat. Costco customers, however, are extremely loyal (something Costco relies heavily on). Although the switchover didn’t go completely smooth, most Costco customers remained loyal to the company.
Costco Stock is Safe
Not only is Costco stock on the cheaper side of dividend stock, it is also a safe option as far as the stock market goes. For the past 10 years the company has been able to provide return for its shareholders. Additionally, the company has significant roots and shows no sign of slowing down any time soon.
The company, which has been in business since 1976, created a powerful brand and a fantastic business model for itself. Costco is one of few retailers that requires all shoppers to be a member or know someone that is a member to be able to shop there.
Currently the company has 715 warehouses with 501 of those locations being in the United States. Costco also operates warehouses in Canada, Mexico, Japan and Taiwan. Costco.com is also available in each of those locations.
Do you own Costco stock? Has it paid off?
For more info on Costco check out these articles.
You can check out our articles for Target as well.