From Nasdaq.: 2024-05-01 03:05:00

Costco (NASDAQ: COST) continues to impress investors with a nearly 14% increase in its upcoming quarterly dividend, bringing the payout to $1.16 per share. Despite the consistent and significant raises, Costco’s dividend yield remains low at 0.6%, compared to the average of S&P 500 stocks at 1.4%. The company’s popularity and unique business model contribute to its success, with solid gains in comparable sales and projected revenue growth. While Costco’s valuations may be high, its track record of double-digit annual dividend raises makes it a compelling investment choice.

Costco’s latest annual dividend raise reflects the company’s ability to deliver consistent growth in both revenue and profitability. The solid 7.7% increase in comparable sales for March, coupled with analyst expectations of a 14% rise in per-share net income and steady revenue growth, reinforces investor confidence in the company’s future prospects. Despite higher valuations compared to other retail stocks, Costco’s unique positioning in the market and strong track record of success make it a valuable addition to any portfolio.



Read more at Nasdaq.: Does Costco’s Huge Dividend Raise Make It a Screaming Buy?