Should You Buy Costco Stock Before Oct. 30? Here's the Clear Answer.

On Nov. 13, Costco Wholesale (NASDAQ: COST) will issue a dividend payout to all of its shareholders on record as of Oct. 30. That dividend payout will be $1.47 per share.

That said, this payout in and of itself isn't enough of a reason to buy shares before October ends. The dividend payout only yields 0.6%, and there are plenty of other stocks in the consumer goods space that pay more. For instance, Coca-Cola's dividend yield is 2.3%, Procter & Gamble's is 2.7%, and PepsiCo's is 4.6%.

Still, the reason someone might want to consider taking a position in Costco sooner rather than later is that its stock price has a history of outperforming the S&P 500, and Costco can continue to reward shareholders in three distinct ways.

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Three ways to make money

As a retail chain, Costco often has a reputation for being a standard consumer goods company. It's also, however, a growth stock, with plenty of opportunities to expand domestically and internationally, building an even larger base of loyal customers and generating even more revenue.

For its fiscal 2025, Costco finished the year with 914 warehouses, expanding that to 939 by the end of fiscal 2026. For its fiscal 2027, it expects 967 warehouses to be open by year-end. With further expansion that can lead to increased revenue, investor enthusiasm can also increase, pushing the stock price higher. While Costco's stock price has returned 13.4% this year, slightly better than the S&P 500's 13.1% return over the same period, Costco has historically shown the ability to handily outperform the broader market.

Over the past five years, Costco's shares have risen 116%, while the S&P 500 has risen 73%. Of course, history is just a guidepost, but finding a stock that has demonstrated the ability to beat the broader markets over a five-year stretch can help build long-term wealth.

Two different dividend payouts

There isn't a set schedule of when it happens, but Costco has rewarded investors over the years with a special dividend. The last time it paid one out was in 2024, at $15 per share. Before that, it paid out a $10 dividend in 2020.

Finally, that brings us back to where we started, with the quarterly dividend. As mentioned earlier, a yield of 0.6% may not seem significant. Still, over time, as you add up Costco's stock price appreciation potential, special dividends, and quarterly dividends, it can offer significant total return potential for long-term shareholders.

With all that in mind, it's worth considering starting a position sooner rather than later to be in the driver's seat to capture all that return potential over the years ahead.

Jack Delaney 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.