Costco Wholesale Corporation (NASDAQ: COST), together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. The company has warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, Iceland, France, and China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Company Overview
- Market Cap: 220.198 Billion
- PE Ratio: 36.51
- EPS: 13.60
- Dividend Yield: 0.82%
- Analyst Rating: 7 Strong Buy, 11 Buy, and 11 Hold. (Average Buy Rating)
Costco Wholesale is among the best dividend-paying retail stocks to consider at current levels. Even with headwinds of inflation, COST stock has remained sideways in the last 12 months. The 0.82% dividend yield stock looks poised for upside as quarterly results remain promising.
For Q1 2023, Costco reported sales of $53.4 billion. On a year-on-year basis, sales increased by 8%, with comparable store sales increasing by 6.6%. It’s worth noting that in the last 12 months, Costco reported $4.3 billion in membership revenue. The recurring revenue expects to swell with high renewal rates and the opening of new outlets; thus, this will support an upside in cash flows.
From a dividend perspective, Costco has reported dividend growth at a CAGR of 13% since May 2004. Dividend growth expects to sustain in the coming years since Costco continues strengthening its omnichannel presence. Gradual expansion in China is also a growth catalyst. Therefore, Costco Wholesale is the best retail stock to own for now as well as long term.