This Ultra-Safe Dividend Stock Can Beat the Bear Market
Growing fears about inflation, soaring interest rates, and a potential recession have sent U.S. stocks into a bear market in 2022. The current market panic has even taken down shares of some companies that are poised to thrive in a volatile economic environment.
Costco Wholesale (NASDAQ: COST) is a prime example. The warehouse club giant has a durable business model and a long track record of growing its sales and earnings over time. It also boosted its quarterly dividend by 14% just two months ago. Nevertheless, Costco stock has lost more than a quarter of its value since peaking above $600 in April. That makes Costco a great dividend stock to buy in these turbulent times.
While Costco stock has been under pressure since late April, its core business hasn't shown any signs of trouble. Earlier this month, Costco reported that net sales jumped 16.9% in May on a 15.5% comparable sales increase. Excluding the impact of exchange rate fluctuations and the tailwind from rising gasoline prices, the retailer posted a solid 11.8% comp sales increase.
Source Fool.com
