Forget Costco Wholesale Corp: Here Are 3 Better Dividend Stocks

Costco (NASDAQ: COST) has one of the more attractive business models in the retail industry. Its subscription setup powers unbeatably low prices that keep customer traffic flowing. And because most of its profits come from annual fees rather than sales markups, the warehouse giant's earnings aren't as sensitive to ups and downs in the economy.

As a dividend stock, though, Costco has a few major drawbacks. That's why income investors might want to take a look at Home Depot (NYSE: HD), McDonald's (NYSE: MCD), or Johnson & Johnson (NYSE: JNJ) instead.

Like Costco, Home Depot has a habit of posting growth levels that its peers just can't match. Its comparable-store sales trounced rival Lowe's in 2016, and the market leader's momentum carried into the current fiscal year as comps jumped 6% in the first quarter compared to Lowe's 2% rise.

Source: Fool.com