Costco Wholesale Corporation just increased its dividend, it's yet another Reason to Invest in the St

WAN CHAI, Hong Kong - May 26, 2022 - PRLog -- COST's dividend is virtually an afterthought for many people. The stock will yield just 0.6% yearly at a closing price of $591.09, a pittance compared to, AT&T's 5.7% dividend. COST's stock was trading at $591.09 in after-hours Wednesday evening, indicating that the stock market had shrugged.

COST began paying dividends in May of 2004 and has continued to do so ever since. However, income investors aren't only interested in the usual payment at COST. The corporation has a history of paying out "special dividends," which are large distributions that occur every few years. The most recent was a $10-per-share dividend announced in November 2020; the previous one was announced in 2017.

COST investors on the other hand, are primarily interested in the stable returns. Over the last three years, the stock has returned 35%, 29% over the last five years, 22% over the last ten years, and 17% over the last fifteen years. Over all of those time periods, those returns have outperformed the S&P 500 significantly.

The most common criticism of the stock is that it is excessively pricey. According to Andrew Bary of Barron's, the company was selling at 42 times 2023 profit forecasts on April 11, making it the most expensive retailer not named Amazon (AMZN). Bary, on the other hand, believes it is deserving of such a high rating. COST continues to give cheap pricing to investors at a time when inflation is driving up the cost of living. Its membership is rising and it manages shoplifting better than its competitors.

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