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Why Costco Stock Crushed the Market Today
The Motley Fool· 2025-04-17 21:36
Core Viewpoint - Costco Wholesale announced a dividend increase, which positively impacted its stock price, rising nearly 3% compared to a minimal increase in the S&P 500 [1] Dividend Announcement - Costco declared a quarterly dividend of $1.30 per share, a 12% increase from the previous $1.16, to be paid on May 16 to shareholders of record as of May 2 [2] - At the latest closing share price, this new dividend amount yields 0.5% [2] Comparison with S&P 500 - The new dividend yield is below the S&P 500 average of 1.4%, indicating that Costco is not primarily viewed as an income stock [3] Historical Dividend Growth - Costco has a history of consistent annual dividend increases for over 20 years, with the last increase being a 14% rise to $1.16 per share [4] Investor Sentiment - While the dividend is not the main driver of Costco's stock performance, it adds value for investors, and the company is expected to continue delivering double-digit dividend hikes in the future [5]
Does Costco's 12% Dividend Hike Make It a Buy Right Now?
ZACKS· 2025-04-17 13:55
Core Viewpoint - Costco Wholesale Corporation announced a 12.1% increase in its quarterly dividend, enhancing its attractiveness to investors seeking steady income and growth [1][2] Financial Performance - The dividend increased from $1.16 to $1.30 per share, reflecting strong cash flow and disciplined financial management [2] - Costco stock closed at $967.75, 10.2% below its 52-week high of $1,078.23, with a 36.1% rise over the past year, outperforming the industry growth of 18.2% [5] - The stock is trading at a forward 12-month price-to-earnings ratio of 50.72, significantly higher than the industry average of 31.59 and the S&P 500's 19.85 [9] Membership and Sales Growth - Costco ended the second quarter of fiscal 2025 with 78.4 million paid household members, a 6.8% increase year-over-year, with executive memberships growing by 9.1% [11] - Comparable sales rose 6.4% for the five weeks ended April 6, 2025, with e-commerce sales increasing by 16.2% [14] Strategic Initiatives - Costco plans to open 28 new warehouses in fiscal 2025, including 25 new locations and three relocations, to expand its market reach [15] - The company has allocated $1.14 billion to capital expenditures in the second quarter and outlined a $5 billion expenditure plan for fiscal 2025 [16] Earnings Outlook - The Zacks Consensus Estimate for earnings per share has seen upward revisions, indicating year-over-year growth rates of 11.4% for the current fiscal year and 10% for the next [17] Investment Considerations - Despite the stock's high valuation, Costco's strong business model and loyal membership base make it an attractive long-term investment, although new buyers may want to wait for a better entry point [18]
Costco Wholesale Corporation Announces an Increase in Its Quarterly Cash Dividend
Globenewswire· 2025-04-16 20:15
Group 1 - Costco Wholesale Corporation announced a quarterly cash dividend increase from $1.16 to $1.30 per share, amounting to an annualized dividend of $5.20, payable on May 16, 2025 [1] - The company operates a total of 904 warehouses globally, with 623 located in the United States and Puerto Rico, and additional locations in Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden [2] Group 2 - Costco also runs e-commerce sites in multiple countries including the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia [2]
Better Dividend Growth Stock: Costco vs. Visa
The Motley Fool· 2025-04-16 12:30
Core Insights - Dividend stocks act as financial fortresses during market volatility, with 85% of the S&P 500's cumulative total return since 1960 attributed to reinvested dividends and compounding power [1] - Dividend growers have outperformed the broader market since 1973 while exhibiting lower volatility [1] Costco Wholesale - Costco has transformed into a global retail leader with a loyal customer base, utilizing a membership model that ensures predictable revenue [4] - The company has a strong commitment to shareholder returns, boasting 20 consecutive years of dividend increases and an average growth rate of 12.6% over the past decade [5] - Despite a current dividend yield of 0.47%, Costco's stock has significantly outperformed the S&P 500 since 2015, reflecting strong price appreciation [6] - With a conservative payout ratio of 27%, Costco has ample room for future dividend increases, supported by projected net sales of $250 billion for fiscal year 2024, a 5% year-over-year increase, and a growing membership base of nearly 137 million [8] Visa - Visa operates one of the largest electronic payment networks globally, connecting various stakeholders without issuing cards or extending credit [9] - The company has a remarkable 10-year dividend growth rate of 17.5%, with 16 consecutive years of dividend increases [10] - Visa offers a higher current yield of 0.71% compared to Costco, with a conservative payout ratio of 21.7%, indicating strong potential for continued dividend growth [11] - The asset-light business model allows Visa to benefit from increased transaction volumes and expansion into emerging markets, positioning it for robust free cash flow and sustained dividend growth [12][13] Comparative Analysis - For investors focused on dividend growth, Visa is identified as the more compelling option due to its higher historical growth rate, lower payout ratio, and higher current yield [14] - Both Costco and Visa can complement each other in a diversified dividend growth strategy, as they have different business models and industry exposures while maintaining a commitment to shareholder returns [15] - If only one stock can be chosen, Visa is considered the better choice in this comparison [16]
Prediction: 3 Stocks That'll Be Worth More Than Costco 10 Years From Now
The Motley Fool· 2025-04-15 13:45
It's not an easy matter to make predictions about the stock market, since no one really knows what it will do from day to day or even year to year. (Over long periods, though, it has always gone up.)Still, I'm here to make a prediction, and I'm predicting that three stocks in particular will be worth more than Costco Wholesale (COST 1.15%) a decade from now. Here's a look at those companies -- and at Costco too. Why Costco?First off, why am I focusing on Costco? Don't I like it? Well, I do, and I'm a longti ...
3 Recession Resistant Stocks as Tariff Battles Ramp Up Risk
MarketBeat· 2025-04-14 12:31
Core Viewpoint - The potential for a recession is increasing due to tariff policies, which could lead to a worldwide economic slowdown as prices rise significantly [1][2]. Group 1: Costco Wholesale - Costco operates in the consumer staples sector, focusing on essential products, which typically perform better during recessions [3]. - The company's revenue forecast for the next 12 months is $1,024.03, indicating a 6.29% upside from the current price of $963.41 [4]. - Food accounts for approximately 54% of Costco's total revenue, with gasoline contributing an additional 12% [4]. - Costco's Kirkland Signature brand is priced about 20% lower than national brands, providing a competitive edge during economic downturns [5]. - Despite exposure to non-food items (26% of revenue), Costco's strong membership renewal rate of 91% during the pandemic helps mitigate risks [6]. Group 2: Dollar General - Dollar General is also positioned in the consumer staples sector, focusing on low-cost essentials, which is advantageous in recessionary periods [7]. - The 12-month stock price forecast for Dollar General is $94.75, reflecting a 6.33% upside from the current price of $89.11 [8]. - Consumables make up 82% of Dollar General's total revenue, including essential items like food and personal hygiene products [9]. - The company's strategy of maintaining low price points makes it a favorable option for consumers during tough economic times [10]. Group 3: TJX Companies - TJX operates in the consumer discretionary sector but employs an off-price strategy, selling brand-name goods at significant discounts [11]. - The 12-month stock price forecast for TJX is $135.76, indicating a 5.88% upside from the current price of $128.22 [12]. - TJX has historically outperformed during recessions, with shares rising 30% in the 2001 recession while the S&P 500 fell [13]. - Analysts have identified TJX as a top pick for potential recession resilience, despite underperforming the S&P 500 in 2020 [14].
Costco Amidst Tariff Risks: To Have Or To Hold?
Seeking Alpha· 2025-04-11 22:08
Group 1 - The article emphasizes the importance of long-term investing, highlighting the benefits of compounding and dividend reinvesting as key strategies for wealth creation [1] - It advocates for a balanced investment approach that combines steady accumulation of high-quality assets with high-risk, high-reward opportunities and transformative technologies [1] - The author expresses a commitment to investing in companies and industries that contribute positively to society, reflecting a values-driven investment philosophy [1] Group 2 - The article does not provide any specific stock recommendations or investment advice, maintaining a neutral stance on the suitability of investments for individual investors [2][3] - It clarifies that the author has no financial positions in the companies mentioned, ensuring transparency in the analysis presented [2]
Costco Delivers Impressive March Comparable Sales Performance
ZACKS· 2025-04-10 17:10
Costco Wholesale Corporation (COST) continued with its decent comparable sales growth in March. The performance reflects Costco’s ability to attract value-conscious shoppers with its competitive pricing and high-quality offerings.Decoding COST’s March CompsCOST’s comparable sales for March reflect its market strength. For the five weeks ended April 6, 2025, comparable sales in the United States, Canada and Other International markets grew 7.5%, 4.1% and 2.9%, respectively. Total company comparable sales ros ...
Costco Stock Rises on Impressive March Net Sales
Schaeffers Investment Research· 2025-04-10 14:55
Group 1 - Costco Wholesale Corp reported March net sales of $25.51 billion, an increase of 8.6% from $23.48 billion last year [1] - The stock is currently priced at $986.50, reflecting a 2.2% increase, and has gained 36.7% over the last 12 months [1][2] - Loop Capital suggests that Costco could benefit from rising inflation amid tariffs [1] Group 2 - The stock is on track for a third consecutive daily gain, with recent trading activity showing a bounce off the $880 region, although there is overhead pressure at $1,000 [2] - Call volume is three times the intraday average, with 19,000 bullish bets compared to 6,620 puts, indicating a shift in sentiment [3] - The Schaeffer's put/call open interest ratio (SOIR) of 1.26 is in the 80th percentile of annual readings, suggesting that short-term traders have been more bearish than usual [3] Group 3 - Costco stock has outperformed options traders' volatility expectations over the last 12 months, with a Schaeffer's Volatility Scorecard (SVS) of 86 out of 100, indicating a favorable environment for options trading [4]
Costco (COST) Moves 6.2% Higher: Will This Strength Last?
ZACKS· 2025-04-10 12:40
Costco (COST) shares soared 6.2% in the last trading session to close at $965.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.3% loss over the past four weeks.U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Costco’s resilient business model, centered around a membership-based structure, continues to be a major growth ...