Better Buy: Disney vs. Costco
Timing is everything when pitting one stock against another. A year ago a battle between Walt Disney (NYSE: DIS) and Costco (NASDAQ: COST) for a spot in your portfolio would've been a juicy matchup. Two iconic brands with slow, yet steady, organic growth for their expanding empires? A ringside seat, please!
It's not a fair bout these days. The two fighters are going in different directions in light of the pandemic. Costco keeps growing, and in many ways the COVID-19 challenge has been an opportunity to cement its standing as an essential retailer. Disney is sliding back as its key businesses get slammed. Did you ever think we would see a 42% decline in quarterly revenue at Disney like we did earlier this month?
Neither investment has been a magnet for yield chasers given their historically low payouts, but even on that front Disney and Costco are passing ships. Costco increased its quarterly dividend earlier this year. Disney has temporarily suspended its distributions until it gets through this coronavirus crisis. It's clear which company is in better shape right now, but this contest is all about which one will win in the future. Let's size up Costco and Disney to see which stock is the better buy at current levels.
Source Fool.com
