Costco closed above $920 a share on Friday, a price that puts a full round lot out of reach for most investors. Yet revenue growth, a 22-year dividend streak, and a possible special payout later this year make a case that a single share is still worth owning.
Costco Wholesale closed at $922.77 on Friday, a price steep enough that a round lot of Costco stock would run more than $92,000. Many brokers now offer fractional shares, but even buying a single full share at that price could still pay off for long-term holders.
Despite the high sticker price, Costco stock is trading 2% lower than it was a year ago. The company keeps growing regardless: revenue has increased 10% over the past year, while the bottom line has risen even faster. Its latest quarterly update, announced late last week, was another earnings beat, even after backing out some one-time tariff refunds.
Costco has traditionally been a low-beta stock, holding up well during market setbacks given its recession-resistant business model; its one-year beta sits at just 0.01. Beyond a dividend it has raised for 22 consecutive years, the company should also announce a larger special distribution later this year.
Source: The Motley Fool
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