Costco: A Dividend Stock With a $4.5 Billion Secret Weapon
Costco Wholesale (NASDAQ: COST) isn't exactly a high-yield stock, but what it lacks in yield, it makes up for in dividend growth. It has increased its payment for 19 years and counting, with the average annual dividend boost over the past decade sitting at a heady 12%. Those two stats are built on what is now a customer foundation worth $4.5-billion-plus annually. Here's what you need to know about Costco's secret weapon.
Every retailer will tell you that customer satisfaction is important. Customers don't return to stores that upset or anger them. But Costco isn't any old retailer; it is a club store that charges a membership fee. So in order to shop at Costco, a customer has to dole out some cash before they can even buy anything.
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Source Fool.com
