Buying companies with a strong track record of payout growth tends to work out well for dividend growth investors. This is because consistently hiking a dividend year after year requires a company to sustain a growing business (i.e., sales and earnings growth).

With 18 consecutive years of dividend growth to its credit, Costco Wholesale (NASDAQ: COST) is a great stock for investors seeking a balance of income growth and capital appreciation. Let's assess the company's fundamentals to better understand why Costco could belong in your portfolio if you are a dividend growth investor.

With more than 850 warehouses as of May across North America, Europe, Oceania, and Asia, Costco is a well-known retailer. The company's extensive global presence is what supports its massive $216 billion market capitalization. 

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Source Fool.com