Here's How Many Shares of Costco Stock You'd Need for $1,000 in Yearly Dividends
Key Points
That dividend will surely grow, as the successful retailer habitually raises it every year.
It's not a high-yield dividend, however.
- 10 stocks we like better than Costco Wholesale ›
One of the more popular stocks in the retail industry also happens to be one of its more consistent dividend payers -- and dividend raisers. In April, Costco (NASDAQ: COST) declared a hike in its payout for the 22nd year in a row. Here's a look at what kind of position you'd need in the stock now to earn $1,000 annually in dividend payments.
Membership has its privileges
The dividend raise lifted Costco's quarterly distribution to $1.47 per share. That equates to an annual payout of $5.88, so to reap that $1,000, you'd require 171 shares.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
There are more high-yielding retail stocks on the market, but Costco is a unique operator. Its stores are, of course, membership only, giving the company a strong foundation of semi-predictable revenue. It leverages this to undercut competitors with pricing.
Customers want to keep coming back for those savings. The company's latest renewal rate is an impressive 92%-plus in the U.S. and Canada, despite a membership fee increase that took effect in late 2024. Meanwhile, the worldwide figure isn't too far behind, at just under 90%.
Better, more folks want to sign up. Costco's membership rolls increased by almost 14% (to over 145 million) in the two-year stretch from the end of 2023 to New Year's Eve 2025.
Downward pressures
A rising membership count, combined with growing worries over the prices of basic household items, continues to boost Costco's financials. In 2025, the company notched all-time annual highs in both total sales ($275 billion) and headline net income (almost $8.1 billion).
Investors have recently been down on Costco stock. Its popularity drove it to an all-time high in mid-May, prompting many investors to sell to book profits. The company's subsequent third-quarter earnings report was mildly disappointing, as was its monthly sales update for June.
Even after that, Costco remains an expensive stock with a skinny dividend yield (0.6%). In my mind, though, it's necessary to pay a premium for quality; meanwhile, this solid performer should continue to post impressive growth numbers. I think it's unquestionably a buy, even at these lofty levels.
Should you buy stock in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
Recommended Articles
