Better Buy: Costco vs. Altria
Costco Wholesale (NASDAQ: COST) and Altria Group (NYSE: MO) are both often considered attractive investments during bear markets. Costco's warehouse stores attract bargain-seeking shoppers during economic downturns and lock them in with sticky membership plans. Altria, the largest tobacco company in th U.S., is often considered a stable source of dividends.
Altria might initially seem more attractive because it trades at just 9 times forward earnings and pays a dividend with a massive forward yield of 8.5%. Costco trades at 34 times forward earnings, and its dividend has a much lower forward yield of 0.7%.
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Source Fool.com
