Better Buy: Costco or Home Depot?

Costco Wholesale (NASDAQ: COST) and Home Depot (NYSE: HD) have both been phenomenal stock holdings for patient investors. The retailers are up nearly 400% in the 10 years ended in early 2023 compared to a 170% increase in the S&P 500 index. Your gains would have been better by roughly 100 percentage points if you reinvested your dividends along the way, too.

But which of these leaders in their respective industries makes the better buy today? Let's compare the stocks with an eye toward returns over the next decade.

Home Depot might be a better fit for your portfolio if you're looking for both dividend income and blazing earnings growth. Sure, annual profits are less predictable for the home improvement giant than they are for Costco, which generates most of its earnings from subscription fees.

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Source Fool.com