Costco Stock Verdict: Should You Buy Now?
Costco Stock in 2026: Why Slow and Steady Might Win the Race
The Quick Story So Far
Imagine you’re watching a race. The S&P 500 (a big group of 500 large companies) is leading with a 13.7% gain in 2026. Costco Wholesale (the warehouse store where you buy giant packs of toilet paper) is running a bit behind at 11.5%.
But here’s the twist: short-term races don’t tell the whole story.
Why Costco Is Like a Turtle (In a Good Way)
Important Point: Costco isn’t a "get rich quick" stock. It’s a "stay rich slowly" stock.
Here’s why long-term investors love it:
- People keep coming back: Costco has a 92.2% membership renewal rate in North America. That means almost everyone who joins stays.
- It sells stuff people need: Toilet paper, food, gas—things people buy even when money is tight. This makes it recession-resistant (it holds up better when the economy gets shaky).
- It pays you to wait: Costco pays a quarterly dividend (a little cash bonus just for owning the stock). The yield is 0.6%—small, but steady.
- Surprise bonuses: Every few years, Costco pays a special one-time dividend. The last one was $15 per share in 2024. That’s like finding a $20 bill in your winter coat—except way bigger.
The Numbers Don’t Lie: Long-Term Wins
| Time Period | Costco Total Return | S&P 500 Total Return |
|---|---|---|
| 3 Years | ~Even | ~Even |
| 5 Years | 115% | 87% |
| 10 Years | 573% | 321% |
Key Takeaway: The longer you hold, the better Costco looks.
What’s Coming Up Next?
- Earnings Report: Costco reports Q4 2026 earnings on September 26.
- Stock Price: Currently around $961 per share.
- Short-Term Guess: The report could push the stock toward $1,000 or down to $900.
- Long-Term View: None of that matters much if you’re investing for 5–10+ years.
Should You Buy Costco Stock Right Now?
Here’s a simple checklist to help you decide:
- Are you investing for 5+ years? Yes → Costco fits.
- Do you want steady, reliable growth? Yes → Costco fits.
- Do you need explosive short-term gains? No → Look elsewhere.
- Are you okay with a low regular dividend but occasional big bonuses? Yes → Costco fits.
Heads Up: The Motley Fool’s Stock Advisor team recently picked 10 other stocks they think are better buys right now. Costco wasn’t on that list. But that doesn’t mean Costco is bad—it just means they see bigger short-term potential elsewhere.
Summary
- Costco is up 11.5% in 2026, trailing the S&P 500’s 13.7%.
- But over 5 and 10 years, Costco crushes the market.
- It has loyal customers, recession-resistant sales, regular dividends, and occasional special dividends.
- Next earnings: Sept 26—could move the stock short-term.
- Best for long-term investors who want stability + growing wealth.
FAQ
Q: What is a dividend?
A: A dividend is a small payment a company makes to shareholders, usually every quarter. It’s like a “thank you” for owning the stock.
Q: What’s a special dividend?
A: A one-time extra payment. Costco does this every few years. The last one was $15/share in 2024.
Q: What does “recession-resistant” mean?
A: It means the business tends to do okay even when the economy is bad—because people still need basics like food and toilet paper.
Q: Why is Costco’s dividend yield only 0.6%?
A: The stock price has gone up a lot, so the dividend percentage looks small. But the actual dollar amount keeps growing.
Q: Should I buy Costco if I need money in 2 years?
A: Probably not. Stocks go up and down short-term. Costco is best for money you won’t need for 5+ years.
Disclosure: The Motley Fool owns and recommends Costco Wholesale. This article is for educational purposes only—not financial advice.