3 Reasons Long-Term Investors Keep Coming Back to Costco Stock​

Core Viewpoint - Costco Wholesale demonstrates resilience and consistent growth, making it a reliable investment despite recent stock performance challenges [1] Group 1: Resilience and Growth - Costco shows strong and steady growth with high, single-digit revenue growth reported nearly every quarter [2] - In the fiscal first quarter of 2026, sales increased by 8.2%, with comparable sales up by 6.4%, and digitally enabled sales surged by 20.5% [3] - December sales results were particularly strong, with an 8.5% year-over-year increase and comparable sales up by 7%, while digitally enabled sales rose by 18.9% [4] Group 2: Long-term Opportunity - Costco operates 923 warehouses globally, with 633 located in the U.S., indicating significant room for expansion [6] - The company is attracting a younger demographic, with nearly half of new signups under age 40, suggesting a long growth runway as these members renew and increase their shopping [7] - A notable increase in executive memberships, which account for 74.3% of total sales, indicates a growing customer base willing to invest more [8] Group 3: Special Dividend - While Costco's regular dividend yield is relatively low at 0.54%, it has a history of paying special dividends, which have ranged from $5 to $15 over the past decade, enhancing total shareholder yield [9]