Costco will pay a quarterly dividend of $1.47 per share next month, and investors who own the stock as of Oct. 30 are eligible. Its latest quarterly EPS of $6.75 beat the $6.54 Wall Street had expected. At a share price of roughly $990, the dividend yield is just 0.6%, lower than PepsiCo's nearly 4.5% and Clorox's close to 6%. Weiss Ratings keeps a 'hold' rating, noting paid membership growth has slowed for eight straight quarters, while CFRA's analyst says a special dividend looks imminent since cash and equivalents stand at $21.3 billion, above $17.9 billion at the last special payout.
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- Costco Wholesale Corporation $COST Stock : TD Waterhouse Canada Inc . Grows Holdings
TD Waterhouse Canada Inc. raised its stake in Costco Wholesale (NASDAQ:COST) by 1.8% in the third quarter, to 339,113 shares worth $284,203,000, or 0.08% of the company. Other investors also changed positions, including Bank of America Corp DE, which took a new stake worth about $6,781,946,000 in the second quarter. COST opened at $989.11 on Friday, within a 52-week range of $844.06 to $1,096.50. Costco reported EPS of $6.75 for the most recent quarter, beating the $6.54 consensus, with revenue of $95.72 billion up 11.1% year over year. It declared a $1.47 quarterly dividend payable November 13th to holders of record as of October 30th, and MarketBeat's consensus rating is 'Moderate Buy' with a $1,087.40 average price target.
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The article names five stocks it says have held up in past market crashes in 2008, 2018 and 2022: Costco, TJX, Coca-Cola, Procter & Gamble and Walmart, all of which pay dividends. Coca-Cola, Procter & Gamble and Walmart are Dividend Kings, having raised dividends for at least 50 consecutive years. Costco's sales grew 13% year over year in September, and its stock rose 49% the year after underperforming the S&P 500. TJX gained 81% in 2009 after barely beating the market in 2008. Coca-Cola is up 40% this year, with latest-quarter sales up 7% and EPS up 16%, while Walmart's e-commerce sales rose 23%.
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Costco stock returned 7.3% over the past year versus 16.5% for the S&P 500, and the article points to digital as the business's fastest-growing part. Digitally enabled sales exceeded $33 billion in fiscal 2026, growing more than 20% against 10.1% for total revenue, and comparable digitally enabled sales rose 19.5% in fiscal Q4 versus 9.4% overall. The Uber Eats partnership is expanding from 17 states to the entire U.S., and the DoorDash partnership also covers the U.S. Digital sales were about 11% of revenue, so the article says they add to growth rather than changing what the company is, and the stock trades at 48.0 times trailing earnings versus 23.0 for the S&P 500. Management said its base of members under 40 has grown nearly 60% since COVID, and the next quarterly results are expected in December 2026.
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Costco shares trade at 47.9 times earnings, well above Amazon's 20.9 and Walmart's 42.8 among six large retailers. Costco's revenue grew 10.1% over the latest four quarters, slower than Amazon's 15.8%, and its 3.9% operating margin trails Amazon's 12.1%. The article suggests the premium may reflect steady membership fee income: $1.849 billion in fiscal Q4, nearly half of the $3.8 billion operating income, with 92.3% of U.S. and Canadian members renewing. Costco plans about $7.5 billion of capital spending in fiscal 2027, mainly for new warehouses, while paid members grew 3.8% year over year.
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The US Consumer Price Index rose 3.7% over the 12 months ending in September, up from 3.4% in August, according to the Bureau of Labor Statistics. Gasoline was the biggest driver, up 9.1% for the month and 34.2% over the year, while core inflation was 2.6%. Food away from home rose 3.5% over the year, faster than the 1.8% increase in food bought to cook at home. The article argues Walmart (WMT) and Costco (COST) benefit from thin markups and value pricing, with Costco's fiscal fourth-quarter sales up 11.2% to $93.9 billion and Walmart's revenue up 5.9% to $187.9 billion. Walmart trades above its own five-year median on forward earnings, while Costco is near its historical average, and the author says neither is a bargain.
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