Yahoo Finance·2025-10-15 13:00Core Insights - Dividend growth is a reliable edge, with companies that regularly raise dividends often outperforming the S&P 500 due to stronger, growing earnings [1] Group 1: Companies Highlighted - Costco operates membership warehouse stores with a recent quarterly dividend increase from $1.16 to $1.30 per share, resulting in a current yield of 0.56% [4] - Costco has about 914 warehouses and maintains a member renewal rate around 90%, supporting steady fee income and traffic [5] - Costco's payout ratio is 27%, allowing for faster dividend growth as earnings rise, despite a high P/E ratio of 50.3 [6] Group 2: AbbVie Overview - AbbVie focuses on immunology, oncology, and neuroscience, paying a quarterly dividend of $1.64 per share, yielding 2.85% annually [7] - AbbVie's payout ratio is 304%, which is high but typical in the pharmaceutical industry due to significant spending on research and one-time items [7] - Dividend growth in companies like AbbVie tends to reflect earnings growth, indicating durable cash flow and disciplined capital allocation [8]