These quality companies can pay you passive income for the rest of your life.Investing in leading consumer brands can be a rewarding dividend investment strategy. History shows that brands that become household names tend to stay that way and keep growing for years.Some of the best income investments may be companies where you shop routinely, which can give you insights about the company's competitive position that Wall Streeters may not fully understand.To give you some ideas, read why three Motley Fool co ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

As Costco Wholesale Corporation (COST) gears up to unveil its third-quarter fiscal 2024 results on May 30 after market close, investors find themselves at a pivotal decision point, weighing the potential upsides and downsides of investing in this membership warehouse club operator.Costco's strategic investments, customer-centric approach, merchandise initiatives and focus on membership growth have enabled it to navigate market turmoil effectively. These strengths have resulted in solid sales and earnings, p ...

With strong growth prospects, sales, and customer retention, Wall Street analysts revised their Costco (NASDAQ: COST) stock price targets ahead of the Q3 May 30 earnings call.The recent Costco success didn’t go unnoticed by Wall Street analysts, who keep a wary eye on companies’ performance, prospects, and other factors that may influence the future stock price.In a report released on May 22, Rupesh Parikh from Oppenheimer maintained a ‘buy’ rating on Costco stock, with a price target of $850 from the previ ...

Core Viewpoint - Special dividends are often overlooked by mainstream financial websites, presenting unique investment opportunities for income-seeking investors [1] Group 1: Special Dividend Examples - HSBC Holdings announced a special dividend of $0.21 per share linked to a $4.9 billion gain from the sale of HSBC Bank Canada [2] - Costco declared a special dividend of $15 per share, driven by a cash reserve of $17 billion, providing an additional 2% annual yield [3] - Companies with cyclical earnings may adopt a hybrid dividend strategy, maintaining regular dividends while supplementing with special dividends as profits allow [4] Group 2: Company-Specific Dividend Yields - Dillard's has a regular dividend yield of 0.2%, but with special dividends, the yield increases to 4.6%, including $15 per share in 2021 and 2023, and $20 in 2024 [6][7] - National Presto Industries has a regular dividend yield of 1.3%, but with special dividends, the yield rises to 5.6%, typically distributing specials in March [8] - Haverty Furniture offers a regular dividend yield of 4.3%, with special dividends bringing the total yield to 7.7%, maintaining a tradition of special payouts since 1935 [9][10] - CVR Energy has a regular dividend yield of 6.9%, but with special dividends, the yield can reach 15.5%, reflecting a responsible dividend program [11][12] - BlackRock TCP Capital Corp. has a listed dividend yield of 12.7%, which increases to 15.9% with special dividends, following a merger that reduced management fees [13]

Key TakeawaysMarkets are closed Monday for the Memorial Day holiday.Investors will be focused on inflation this week, with the Friday release of the Personal Consumption Expenditures (PCE) index.Salesforce, Costco, Dell, and Dollar General lead a string of technology and retail earnings reports coming out this week. Inflation will take center stage in a holiday-shortened week with the Friday release of the Personal Consumption Expenditures (PCE) index, showing whether price pressures continued to cool in Ap ...

Core Insights - Costco stock has delivered an impressive annualized return of 28% over the past five years, significantly outperforming the S&P 500 index [1] - Approximately half of the stock's price increase is attributed to an expansion in the price-to-earnings (P/E) ratio, rather than growth in the underlying business [2] - The stock is currently trading at a historically high P/E of 52, suggesting that future stock price increases may align more closely with earnings growth, projected at an annualized rate of 9% [3] Group 1 - Costco's stock performance has resulted in a $3,467 value from an initial $1,000 investment over five years, including dividends [1] - The trailing-12-month earnings of Costco nearly doubled in the last five years, while the P/E ratio increased by 87% [2] - Net sales for Costco increased by 7% in the last fiscal year, with net income rising by 8% [3] Group 2 - Analysts project Costco's earnings per share to grow at an annualized rate of 9% in the coming years [3] - Investors should not expect the stock to continue its rapid ascent of 200% in value every five years [3]

The company is outperforming many of the U.S.' biggest retailers and has massive growth potential over the next five to 10 years.Costco (COST 1.68%) has come a long way since starting out as one of the world's first retail warehouse clubs in 1983. Back then, the company called itself Price Club and was based in San Diego, California. The retail giant went public only two years later, in 1985, and the rest is history.Shares of Costco have soared 89,000% since its initial public offering, creating plenty of m ...

Retail Industry Overview - The retail industry has faced unprecedented challenges over the past four years, including pandemic-induced shutdowns, a surge in "revenge shopping," and record-high inflation and interest rates [1] - The Federal Reserve raised interest rates 11 times in 2023, leading to a higher-for-longer policy that has dampened consumer spending beyond necessities [1] - Despite the challenges, there are still opportunities to find strong retail stocks that can thrive and generate significant returns [2] Walmart (WMT) - Walmart is considered a premier essential business, with sales increasing 6% year-over-year to $161.5 billion, surpassing Wall Street expectations of $159.6 billion [3] - Adjusted profits were 60 cents per share, beating estimates of 53 cents, driven by consumers responding to Walmart's value proposition rather than inflation [3] - Walmart's stock is expected to be 24% higher in 2024, making it a key retail stock to consider [4] LVMH Moet Hennessey Louis Vuitton (LVMUY) - LVMH, a luxury retailer, has outperformed many aspirational luxury and mass merchandise retailers due to the resilience of wealthy consumers during inflationary periods [5] - First-quarter revenue fell 2% to 20.7 billion euros ($22 billion), but this was due to a record-breaking growth pace in 2023 rather than a significant pullback [5] - LVMH's stock is trading at a discount to its future growth prospects and offers a dividend with a 12.6% compounded annual growth rate (CAGR) [6][7] Costco (COST) - Costco is an essential retailer that delivers value, with its stock returning 763% over the past decade compared to the S&P 500's 238% return [8] - The company is poised to raise membership fees, which could generate significant revenue, as membership fee revenue already rose 8% in Q1 to $1.1 billion [9] - Costco ended the first quarter with 132 million cardholders and $73.4 million paid memberships, making it a strong retail stock to buy [9]

Analyst Estimates for Q3 2024Q2 2024Q3 2023Revenue$57.89 billion$58.44 billion$53.65 billionDiluted EPS$3.67$3.92$2.93Net Income$1.63 billion$1.74 billion$1.3 billion Key Metric: Memberships Costco, like other warehouse retailers including BJ's Wholesale Club (BJ) and Walmart's (WMT) Sam's Club, uses memberships to provide access to its stores, which helps Costco generate revenue before a shopper sets foot in the store. Since 2017, Costco memberships, which come in two price tiers, have cost $60 per year ...