Is Costco Still a Great Dividend Stock?
When many people consider a holding in their portfolio as a dividend stock, it is typically one that would offer a yield that pays well above the most generous bank accounts. The base dividend from retail giant Costco Wholesale (NASDAQ: COST) typically wouldn't qualify for that with a recent yield of only 0.9%.
But Costco approaches its payouts to shareholders a little differently, because that relatively modest base dividend is supplemented by a special dividend in years when the business conditions warrant. That's occurred four times in the past 10 years, and it's made a huge difference in long-term returns.
So for investors looking for a holding that offers income and can anchor a portfolio, Costco is worth a closer look.
Source Fool.com
