Is Now a Good Time to Buy Costco Wholesale Stock?
Key Points
Costco stock has underperformed the S&P 500 so far in 2026.
Its membership renewal rates in North America are strong at 92.2%.
It pays a quarterly dividend and occasional special dividends, which can boost total returns for long-term investors.
- 10 stocks we like better than Costco Wholesale ›
Costco Wholesale (NASDAQ: COST) has provided steady returns so far in 2026, climbing 11.5% as of this writing, but it's still being outperformed by the S&P 500's 13.7% return.
Aside from an upcoming earnings report, it may not have many company-specific catalysts to send the stock price much higher this year. But even if it gets beaten by a few percentage points by the S&P 500 in 2026, that isn't a reason to overlook the long-term benefits of owning the stock.
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: The Motley Fool.
Owning Costco stock is for the long haul
While it's not a recession-proof stock, Costco is a recession-resistant stock. The loyalty of its customer base is well known, with a renewal rate of 92.2% across North America. As it sells necessities in bulk, even during tight times, it runs a business that naturally makes customers more inclined to keep their membership.
In addition to its reliable revenue generation, Costco also pays a dividend. While the dividend yield is on the lower side at 0.6%, it still provides income, and that payout helps boost total return potential for shareholders.
Aside from that quarterly dividend, Costco also pays special, one-time dividends every few years. The last special dividend was issued in 2024 at $15 per share.
Costco is scheduled to report its 2026 fourth-quarter earnings on Sept. 26, which could determine in the short term whether the stock, currently trading at $961 per share, rises toward $1,000 or falls toward $900.
But as a company that generates reliable revenue, offers a dividend payout that can boost total return, and has paid a special dividend every few years, Costco could be worth considering for long-term investors. While the stock has trailed the broader market in the short term, over three years it is roughly on par with the S&P 500 in price and total return. Over five years, Costco's total return of 115% far outclasses the S&P 500's 87%. Over 10 years, it's a 573% gain compared to 321%.
Clearly, long-term investing makes a difference.
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 $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% 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 August 16, 2026.
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.
Recommended Articles
