Why Costco Stock Is a Great Investment

Over the past month, I’ve tackled a lot of different topics to help you navigate the markets and find the best investments. We’ve covered everything from the U.S. retirement crisis to the best copper ETFs. I’ve shared analysis on everything from consumer discretionary stocks to the best dividend stocks for 2024. I’ve provided individual analysis on companies like Vale, Intel, and even a fund called DXYZ. I’ve given you lists of the best-quality cheap stocks to buy. I’ve explained the tax implications of foreign investments. I even covered the “interesting” trading patterns in Trump Media stock. And today, I want to take you down another completely different path and talk about Costco stock and why it’s one of my favorites.

Costco Stock Outperforms the Competition

The main and only reason I like Costco stock so much is because it outperforms the competition like clockwork. And investors get rewarded every time it does as Costco stock climbs up the charts higher and higher. In fact, since Costco stock first became available to buy, it’s soared a whopping 800x in value.

And investors who put just $1,000 into its IPO have made a fortune worth nearly a million bucks thanks to their Costco stock. But past performance isn’t always indicative of future results. So how do we know that won’t be the case with Costco stock?

Costco Stock Is Better Because Costco Is Better

To be completely honest (which you always should be), there’s no way to know for sure if Costco stock is going to continue its stellar performance. That would require a crystal ball or some fortunetelling abilities and I have neither. But I can tell you that Costco stock is likely to continue to outperform its peers for the simple reason that Costco is better than its peers. That may be a polarizing statement for BJ’s or Sam’s Club members, but it’s the fact of the matter. The stores offer a wider selection of brands, higher-quality products and a higher-quality in-store brand, a more generous return policy, better travel services with more options, and offer an overall better shopping experience, according to national surveys. And Costco stock outperforms its peers because its customers keep coming back for more.

But Costco stock also outperforms because Costco has better employees. The company offers better benefits and better pay and its employees love being there. That’s led Costco to have the highest average employee sales figures in the industry. And that is another reason Costco stock beats the competition and should keep doing so.

The “Secret Sauce” for Costco Stock Gains

But the thing is, it’s not only because the stores and employees are better that Costco stock is likely to keep outperforming its peers. Costco stock also has a secret weapon to keep its investors’ pockets full of gains. And that’s the Costco stock dividend. The company pays investors every quarter like clockwork, and those steady payments make the profits from being the best even bigger. Without the dividends, Costco stock delivered an 81,190% gain for investors. But with those dividends included in the calculation, that profit jumps to a staggering 124,600%!

That means $1,000 invested in Costco stock at its IPO would be worth $1.25 MILLION today! If you’d invested $10,000… it would be worth $12.5 MILLION! That’s the power of investing in a good company that pays steady dividends. And that’s exactly what you get when you invest in Costco stock.

7 Investments I Like Better Than Costco Stock

Now, look, I really do like Costco stock. It’s a great investment in a great company and it pays a great dividend. And I would encourage investors to get some exposure to Costco stock in their portfolios. But there are a lot of companies I happen to like even better than I like Costco stock. So, since you already know I like Costco stock a lot, it should be pretty clear that I’m practically in love with these other companies. You see, all of these companies are also at the top of their industries and pay out large but sustainable dividends year in and year out. And they’re in markets that look like they’re set up to experience more growth than the wholesale club market.

That means these markets are poised for more profits and these stocks could be too. So, now that you’ve learned why Costco stock makes such a good investment, I highly encourage you to check out this specially curated list of seven more stocks I and the other analysts here at Wealth Daily like even more than Costco stock. And I also highly encourage you to stick around and keep learning more about the ins and outs of the financial markets from some of the most trusted experts in the field.

To your wealth,

Jason Williams

@TheReal_JayDubs

Angel Research on Youtube

After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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