This Top Dividend Stock Is Better Than It Looks

While it's nice to see stocks rising again following a brutal market crash in February and March, one downside to growing optimism on the Street for securities is that there are fewer bargains to be found. With shares of many companies trading near -- or even above -- pre-COVID-19 levels, some investors may be giving dividend stocks a second look. After all, dividend-paying stocks often trade at more conservative valuation than growth stocks and they provide a nice perk for shareholders: an income stream.

One dividend stock worth taking a close look at today is Costco Wholesale (NASDAQ: COST). With a dividend yield of just 0.9%, Costco may not look attractive on the surface. But investors who evaluate this dividend payer by its dividend yield today are dramatically underestimating Costco's potential as an income investment.

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Source Fool.com