Costco’s stock just went on sale, but it’s still not cheap

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 92%

Canada Headlines News

Canada Latest News,Canada Headlines

While there is little doubt that Costco is an extremely well-run company whose sales, earnings and store count will continue to grow, the stock’s rich P/E multiple gives some analysts pause

) as a potential investment. We shop there regularly and the place is always buzzing. The people working there seem happy, and the products we buy are of good quality. Over the years the stock has done well, and in 2023 it did extremely well. However, the dividend yield is not impressive. What are your thoughts?

The shares have recovered some ground since then, but they are still well below their 52-week closing high of US$785.59 reached on March 7, before the results were released. One of Costco’s strengths is its ability to find novel ways to generate consumer interest and boost sales. For example, when the company added one-ounce gold bars last year to its vast selection of groceries, electronics and appliances, it sold more than US$100-million of the precious metal online in the three months ended Nov. 26. It has since added silver bars and coins, which it says are also selling briskly.

This was the company’s fifth special dividend in the past 11 years, and it probably won’t be the last. Costco has also been raising its regular quarterly dividend annually for many years, a pattern that will almost certainly continue.

Source: News Formal (newsformal.com)

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in CA

Canada Latest News, Canada Headlines