Why Investors Should Love Costco's Dividend
Costco (NASDAQ: COST) shareholders have had an incredible run. Shares are up 60% over the last year and 208% over the past five. This obliterates the S&P 500's returns during both periods. Wall Street clearly loves this membership-based wholesale retailer's stock. But what is it, exactly, about Costco that investors love?
We all know investors love the company's business model, which flexes its scale to provide significant savings on high-quality products for its members. This, combined with a great customer experience, creates loyalty from existing members and attracts new members who want in on the good deals. Then, of course, there are the smaller yet fun (and arguably viral) aspects of its business, from its $1.50 soda and hot dog deal to its generous return policy.
But some investors may be unaware of another unique aspect of Costco's business: the company's approach to dividends.
Source Fool.com
