Costco combines steady annual dividend increases and occasional special payouts, having raised its regular dividend annually for over two decades. The 2025 annual dividend is $4.64 per share, a yield near 0.5% on the current stock price, but dividend growth averaged about 12% annually over the past decade. Long-term shareholders benefit from yield on cost; investors who purchased shares ten years ago when the dividend was $1.42 now receive $4.64, producing a yield on cost near 3.3%. Yield on cost measures current dividend relative to original purchase price, underscoring the value of patience and compounding.
"Costco ( NASDAQ:COST ) is a retail giant known for its sprawling warehouses, bulk discounts, and loyal membership base. But beneath its reputation for value shopping lies a lesser-known strength: a robust dividend program that rewards long-term investors. While the company's dividend yield may appear modest at first glance, its consistent growth transforms it into a powerful wealth-building tool, making it a compelling investment for patient shareholders."
"In 2025, the warehouse club's annual dividend stands at $4.64 per share, offering a yield of about 0.5% based on its current stock price. At first, this yield seems underwhelming compared to high-yield stocks like AT&T ( ) at 4.3% or even Target ( ) at over 5%. However, Costco's secret lies in its dividend growth rate, which has averaged around 12% annually over the past decade."
"This consistent growth means that investors who bought Costco shares years ago are now earning significantly more on their initial investment. For example, a shareholder who purchased Costco stock 10 years ago when the dividend was $1.42 per share would now receive $4.64 per share annually. This growth pushes the yield on cost - a measure of the dividend relative to the original purchase price - to an impressive 3.3%. The result is a dividend that feels far more substantial than the headline yield suggests."
Read at 24/7 Wall St.
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