#6 - Costco (NASDAQ:COST)
Costco Wholesale Corp. (NASDAQ: COST) is one of the consumer discretionary stocks that’s been moving counter to the broader sector. In the last three years, Costco has delivered shareholders a total return of 110.5%.
Part of that growth is attributable to the company’s dividend. Costco has increased its dividend for 20 consecutive years and has increased it by an average annualized three-year rate of 13.5%.
Despite inflation that’s affecting both producers and consumers, Costco continues to benefit from its subscription model. In late 2024, Costco increased its membership fee for the first time in seven years, but its retention rate is still over 95%.
The business model also explains Costco’s ability to generate strong FCF. The $6.6 billion in FCF the company delivered in 2024 was a tick down from 2023, but it continues to point to the company’s ability to maintain its operating margins even as it continues to expand its retail footprint.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
More- Current Price
- $1,056.03
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $1,021.93 (3.2% Downside)
