The membership warehouse retailer Costco (NASDAQ: COST) has made shareholders significantly richer in the last decade. A $10,000 investment in the stock made 10 years ago would now be worth approximately $56,000 with dividends reinvested. For context, that is well above the $31,000 that the same investment amount in the S&P 500 index would have grown into during that time. 

Investing comes with the following caveat: Past performance is no guarantee of future results. And while this does hold true, wealth-building, winning stocks typically continue to do well in the long run as long as the investment thesis remains intact. This raises the following question: Is Costco still a buy for dividend growth investors looking to build meaningful wealth? Let's take a look at the company's fundamentals and valuation to decide.

With nearly 850 warehouses spread throughout North America, Asia, Europe, and Oceania, Costco is a brand that is recognized in most economically developed nations. This brand recognition explains how the company's market capitalization is currently a staggering $213 billion. 

Continue reading

Source Fool.com