Tuesday, August 2, 2016

No Deals At Costco Wholesale Corporation

dividend growth investing, value investing, discounted cash flow analysis
Costco Wholesale Corporation (COST) Dividend Growth Stock Analysis 2016
My wife and I became members of Costco Wholesale Corporation (NASDAQ:COST) earlier this year and the warehouse really is fantastic. We've been to the store closest to us a few times over the past few months and compared to some of the other large retailers in our area I have to say that Costco is by and far the best one to visit.

I've long heard of Costco's merits from shoppers and investors alike. Now that I've had the Costco experience first hand it's time to investigate the company as an investment.
How about that dividend?
As a dividend growth investor one of the first things I examine is whether a company has consistently paid and grown their dividend payout.
Costco has increased the dividend payout for 13 consecutive years giving them the title of Dividend Contender. There's plenty of other companies that have streaks longer than Costco; however, a journey of a thousand miles begins with one step...or in Costco's case 13.
The following chart shows the quarterly dividend payment from Costco since initiating a dividend in 2004.
Continue reading the article on Seeking Alpha.

Seeking Alpha - Costco Wholesale Corporation (COST) Dividend Stock Analysis 2016


  1. Hi JC,

    Very nice article. Your conclusion pretty much summarizes what I think about Costco - great business but really expensive.

    As a side note, we became members in the past year as well.

    1. DGI,

      It's a shame really because after becoming a member, the stories of how they treat their employees and shareholder friendly management I really want to add Costco to my portfolio. Plus I think they're a bit more insulated from Amazon than other discount retailers.

      Thanks for stopping by!

  2. Good read, thank you for sharing your thoughts. I haven't really looked into Costco before and it seems I don't need to, atleast for a while.


  3. You nailed. A great company that you don't want to own at the current multiple.