Costco has an evergreen membership model that breeds loyalty and generates sales volume. The market is satisfied that it can continue to report growth despite a challenging environment.
Costco's share performance comes up significantly ahead of the S&P 500, thanks to strong fundamentals. Since the valuation is steep, investors aren't advised to buy the stock right now.
Dividend stocks provide security for any kind of portfolio, and even growth investors should have some. These excellent, long-term businesses can support a growing dividend.
Costco's yield may look underwhelming, but that's largely due to the stock's impressive gains. The company has doubled its dividend payments since 2020.
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