fool.com·May 25, 2026
Costco Wholesale is highlighted as a strong dividend stock due to its consistent annual dividend increases over two decades, including a recent 13% raise, and a durable business model supported by a high membership renewal rate. Despite its high valuation, the company's steady growth and occasional special dividends make it a worthwhile long-term investment for income-focused investors.
For a long-term dividend growth strategy, consider Costco Wholesale (NASDAQ: COST) given its consistent annual dividend increases for over two decades and periodic special dividends, despite its modest current yield of 0.6%. However, be mindful of its high valuation, trading at about 53 times earnings, which could pose a risk if growth slows.