Costco Wholesale - COST Dividend Overview: Stock Analysis, Dividend Payout Ratio, and Dividend History for 2024

Costco Wholesale - COST - Market Position

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Stock Ticker Home Page Asset Class Sector Industry Investment Strategy Dividend Frequency Geographic Focus
COST Costco Wholesale Corporation Stock / Equity Consumer Defensive Retail - Discount Stores Growth Quarterly Global

While Costco Wholesale Corporation (COST) may not offer the highest dividend yield in the market, currently standing at around 0.7%, the company's consistent dividend growth and shareholder-friendly policies make its dividend an attractive proposition for long-term investors. Costco has a proven track record of increasing its dividend payments over time, reflecting its strong financial performance and commitment to returning value to shareholders.

Costco's unique membership-based business model, which generates recurring revenue streams from membership fees and fosters customer loyalty, has contributed to the stability and growth of its dividend. The company's focus on operational efficiency and cost control has enabled it to maintain healthy profit margins, supporting its ability to fund dividend increases and share buybacks. Additionally, Costco's relatively low dividend payout ratio of around 27% suggests ample room for future dividend growth as the company continues to expand its operations and generate strong cash flows. While the dividend yield may not be the highest, Costco's consistent dividend growth, strong financial position, and shareholder-friendly approach make it an appealing choice for investors seeking a reliable income stream from a well-established and resilient company.

Costco Wholesale - COST - Current Market Data

Costco Wholesale - COST - Business Overview

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Section Information


Costco Wholesale, commonly known as Costco, operates a chain of membership-only warehouse clubs offering a wide variety of brand-name merchandise at significantly discounted prices. With over 800 locations worldwide and over 118 million members, Costco holds a dominant position in the warehouse club industry, capturing over 50% of the US market share. Their mission: "to consistently deliver exceptional value to members by offering a wide selection of quality products at the lowest possible prices while providing outstanding customer service." Core values include integrity, trust, and commitment to employee and community well-being.

Business Model:

Costco primarily generates revenue through membership fees and product markups. The membership model attracts loyal customers who spend more frequently and in larger quantities, boosting profitability. They maintain low margins but focus on high volume and efficiency to generate profits. Key partners include major manufacturers, distributors, and logistics providers. Membership fees and product sales across various categories like groceries, electronics, and apparel contribute significantly to revenue streams.

Industry Competition:

Sam's Club (Walmart) and BJ's Wholesale Club are Costco's main competitors. Recent trends like e-commerce growth and omnichannel strategies are impacting the industry. Online grocers and discount retailers also pose some competition.

Competitive Advantage:

  • Strong Membership Base & Loyalty: Loyal members drive recurring revenue and predictable cash flow, providing stability.
  • Bulk Buying & Efficient Operations: Efficient supply chain and large-scale purchasing power result in lower costs and competitive pricing.
  • Focus on Quality & Brand-Name Products: Offers a curated selection of high-quality brands, attracting both value-conscious and quality-seeking customers.
  • Strong Financial Performance & Cash Flow: Consistent profitability and healthy cash flow support future growth and shareholder rewards.

Management Team:

CEO Craig Jelinek boasts extensive experience in retail and finance, leading Costco since 2012. CFO Richard Galanti brings decades of expertise in financial management and strategic planning. The team has received industry recognition for their leadership and commitment to sustainable practices.

Financial Performance:

Costco enjoys consistent revenue and earnings growth, with a strong track record of profitability. Their conservative financial management and focus on long-term value creation are reflected in healthy cash flow and a low debt-to-equity ratio. Recent developments include international expansion and investments in e-commerce platforms.

Investment Thesis:

Investors may consider Costco for:
  • Stable & Growing Dividends: A history of consistent dividend increases and a healthy payout ratio attract income-seeking investors.
  • Long-Term Growth Potential: International expansion, new product categories, and e-commerce initiatives offer potential for future growth.
  • Recession-Resistant: Warehouse clubs tend to perform well during economic downturns due to their focus on value and essential products.
However, consider:
  • Limited Growth Compared to Other Sectors: Slower growth compared to high-tech or emerging markets.
  • Sensitivity to Consumer Spending: Reliant on consumer spending habits, which can be impacted by economic fluctuations.
  • Mature Industry & Competition: Operating in a relatively mature industry facing competition from online retailers and discount chains.


Costco stands as a strong player in the retail landscape, offering stability, reliable dividends, and long-term growth potential. Its loyal membership base, efficient operations, and focus on quality differentiate it from competitors. However, slower growth and industry competition require careful consideration. Diversification within the retail sector remains crucial.

COST Dividend Analysis

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Section Details

COST Dividend Data

Costco Wholesale Corporation (COST) is a leading membership-only warehouse club that has been paying dividends for many years. The annual dividend for COST shares is $3.60. Costco pays quarterly dividends to shareholders.

COST Dividend Yield

The current dividend yield for COST is 0.7%. This means that for every $100 invested in the company's stock, investors would receive $0.70 in dividends per year.

COST Dividend History

Over the past three years, Costco's dividend has grown at a steady pace. The company has increased its dividend for several consecutive years. The most recent change in the company's dividend was an increase of $0.09 per share in April 2023.

COST Dividend Payout & Dividend Payout Ratio

The dividend payout ratio for COST is currently around 27% based on the trailing year of earnings. This indicates that Costco is paying out a relatively modest portion of its earnings as dividends, leaving ample room for future dividend growth.

COST Dividend Stability & Growth

Costco has a track record of consistently increasing its dividends over time. The company's strong financial performance, membership-based business model, and focus on operational efficiency have supported the stability and growth of its dividend. While the dividend yield may not be the highest in the market, Costco's commitment to returning value to shareholders through dividends and share buybacks has been a hallmark of its shareholder-friendly policies.

COST Chart

COST Comparative Analysis

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COST (Costco Wholesale Corporation) WMT (Walmart Inc.) TGT (Target Corporation)

Industry Focus

Membership-based warehouse club Retail discount stores General merchandise retailer

Current Yield

0.55% 1.29% 2.83%

Price-to-Earnings Ratio (P/E)

52.7 31.6 22.1

Investment Strategy

Low-cost, high-volume retail model with membership fees Everyday low prices and broad merchandise assortment Omnichannel retail experience and private-label brands

Consumer Stocks



Technical Analysis

Additional Considerations: Highlighting Risks

WCostco Wholesale Corporation (COST) has a strong dividend history, having paid dividends per year for 33 consecutive years. The company's current dividend payout ratio is relatively low, indicating that the company may have room to increase dividends in the future, subject to its financial performance and growth plans. However, it's important to note that Costco's dividend data is solely for informational purposes and should not be considered a substitute for professional financial advice.

Costco operates membership warehouses that offer a wide range of merchandise categories, including nationally branded and private-label products, excluding gasoline. While the company also operates e-commerce websites in several countries, including the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia, its primary revenue source is from its warehouse operations. Investors should consider Costco's ability to maintain its high level of customer satisfaction, manage debt levels, and continue its growth trajectory, as these factors could impact its future dividend payouts. Additionally, it's essential to analyze the company's financial metrics, such as revenue, net income, and cash flow, to gauge its overall financial health and dividend sustainability..