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.
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.
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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.
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.