If you're looking for a quality dividend stock to add to your portfolio, it may be easy to skip over Costco Wholesale (NASDAQ: COST). The big-box retailer pays a dividend yield of less than 1%, which may look a bit bland. But long-term shareholders know that dividend yields can be misleading in this case.

If you had held on to Costco's stock over the past five years, the dividend income you would have received from it would have not only been more than what you would have earned from the average stock on the S&P 500, but its payout would have been the equivalent of a stock yielding more than 3%.

One of the ways Costco has rewarded its long-term shareholders over the years is through dividend increases. Last week, the company reported its latest dividend, which at $1.16 is 14% higher than the $1.02 it was previously paying. At the start of 2019, the company was paying investors a quarterly dividend of $0.57 -- it has gone on to more than double since then.

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Source Fool.com