From Yahoo Finance: 2025-04-15 09:52:00

In a recent article, we compared Costco Wholesale Corporation (NASDAQ:COST) to other high-growth forever dividend stocks, highlighting the long-term value of dividend-paying stocks. Dividend stocks have outperformed broader markets this year, offering stability during market downturns. S&P Dow Jones Indices reports that Dividend Aristocrats have delivered stronger risk-adjusted returns historically, with lower volatility.

Costco Wholesale Corporation (NASDAQ:COST) has seen strong revenue growth of 10.77% over the past five years. The company’s Q2 2025 earnings call revealed a surge in sales across various categories, with a 6.8% increase in same-store sales driving growth. Costco’s membership-based model has led to a 6.8% year-over-year increase in membership and a high renewal rate of 93%.

Costco Wholesale Corporation (NASDAQ:COST) ended the quarter with over $12.3 billion in cash and cash equivalents. The company’s operating cash flow exceeded $6 billion, enabling it to increase dividends for 10 consecutive years. With a quarterly dividend of $1.16 per share and a dividend yield of 0.48%, Costco ranks 6th on the list of best high-growth stocks that pay dividends.

While Costco (COST) shows promise as an investment, deeply undervalued dividend stocks may offer greater potential for higher returns within a shorter timeframe. Investors seeking such opportunities are encouraged to explore our report on dirt cheap dividend stocks.



Read more at Yahoo Finance: Among the High Growth Forever Dividend Stocks to Invest In