What could your Costco investment become?

Is Costco a dividend stock?

Yes — Costco (COST) pays a dividend yield of 0.6%, paid quarterly. It pays out about 30% of its earnings as dividends, leaving room to reinvest in growth and potentially raise the dividend over time.

Costco pays dividends quarterly, so investors receive income quarterly.

What sector is Costco in?

Costco (COST) is part of the Food & Consumer sector. Consumer staples are the everyday essentials — food, drinks, and household goods — that people keep buying regardless of the economy. The sector is traditionally defensive. Costco trades at a price-to-earnings (P/E) ratio of around 20, which reflects how much investors are currently willing to pay for each dollar of the company's earnings.

💡 A wholesale club people love. Annual fees = guaranteed cash flow.

⚡ A hot dog with a drink at Costco has cost $1.50 since 1985.

How is this projection calculated?

The calculator above assumes a 6% average annual return — roughly in line with long-term stock-market averages — and compounds your investment year by year. Dividend income is estimated from Costco's current 0.6% yield. These are educational projections based on historical averages. Actual returns may vary, and your capital is at risk.