Costco Wholesale Stock Is Trading Over $1,000. Here's Why a Stock Split Still May Not Come in 2027.

Thus far in 2026, Costco Wholesale (NASDAQ: COST) stock has been battling the $1,000 price level. It still has to make it through the rest of November and December, but as of the Oct. 30 closing price, Costco is trading above $1,000.

While there's nothing that says a stock split must occur at that price, it's a key psychological level for investors. At $1,000 or higher, shareholders may worry that retail investors will be priced out, stalling the share price from moving higher. Ironically, however, hitting that price in the first place highlights Costco's business strength.

Costco doesn't take stock splits lightly

The retail wholesaler's history of stock splits, along with a lack of management commentary on the issue, suggests one isn't imminent. The last time Costco split its stock was in 2000, and the lack of recent stock splits suggests the management team doesn't take them lightly.

Additionally, as fractional investing becomes more common in online brokerage accounts, management may feel there's less need to conduct a split, which is ultimately an additional expense for the company due to the legal fees and paperwork involved. Investors are no longer forced to buy only whole shares, so whether someone wants to buy $1,000 worth of Costco stock or $10 worth, they can already execute that trade, even without a split.

That said, there's another reason Costco's management team may not feel the need to split the stock; in the court of investor perception, a high stock price simply feels like a winner.

At the start of the 2026 trading year, Costco stock opened at $861.14. As of this writing on Nov. 1, the stock price has climbed 17.3% year-to-date, outperforming the S&P 500's 10.7% return. That shows that even at a perceived higher price, there's still demand for Costco shares, and investors are willing to pay more now to own some than at the start of the year.

That's recognition of a few things, ranging from Costco serving not only as a defensive play as a recession-resistant stock, but also having sales growth opportunities through store expansion and an increased online sales presence. And those factors, rather than whether Costco will split its stock in 2027, make it worthy of investment consideration.

Dual characteristics, one attractive investment

Costco is a rare breed of company in that it has defensive stock characteristics while also having growth-stock traits. In terms of its defensive nature, Costco fits the bill as a business that can do well in gloomy economic conditions. Its bulk deals on groceries and household essentials help stretch a budget further, and its members are extremely loyal. In North America, Costco reported in its fiscal 2026 fourth-quarter earnings results that renewal rates were 92.3%, while worldwide renewal rates were just under 90%. Costco's fiscal year ended Aug. 30.

In terms of growth opportunities, the retailer is seeing more people visiting its website, with a 30% increase in site and app traffic in the fourth quarter. Along with that increase in traffic, it's also seeing higher revenue through its online presence, reporting a 19.5% increase in digitally enabled comparable sales that quarter.

Costco is also continuing to expand its warehouse locations; it finished fiscal 2026 with 939 and plans to finish 2027 with 967. More specifically, it expects to add 18 more warehouses in the United States, five more in Canada, and five other international locations.

The bottom line on Costco

The retail giant could still be a stock split candidate in 2027, but there's nothing to suggest it's likely. That said, it doesn't need one to reward shareholders with a potential short-term boost from excitement around a stock split. That's because, when you own shares of Costco, you already have three ways to profit. One is through stock price appreciation, the second is through dividends, and the third is through special dividends.

Over the last five years, Costco stock has climbed 97.2%, easily beating the S&P 500's 61.3% gain over the same period. With its continued warehouse expansion to reach new members and budding online sales, it drives even more sales growth, offering the opportunity for its stock price to continue to outperform the S&P 500. For its dividend payouts, while its quarterly dividend yield is on the lower side at 0.5%, that payout still helps boost an investor's total returns. And its special dividend, typically paid only every few years, also helps boost that total return, with its last payment in 2024 of $15 per share.

When adding everything together, from its business fundamentals to its loyal customer base to its warehouse expansion opportunities, and throwing in the three mechanisms by which the retailer rewards its shareholders, Costco's pricey stock still offers a compelling long-term investment opportunity.

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.