Mizuho Raises Costco (COST) Target as Membership Trends Rebound

Costco Wholesale Corporation (NASDAQ:COST) is included among the 15 Best Wide Moat Dividend Stocks to Invest in.

On February 3, Mizuho lifted its price target on Costco Wholesale Corporation (NASDAQ:COST) to $1,065 from $1,000 and kept its Outperform rating in place. The firm expects the stock to keep finding support through the year as membership growth picks back up and the pace of consumer spending cools to more normal levels.

Costco’s long-term performance shows why investors tend to stay patient with the name. Over the past five years, the shares have been up more than 177%, far ahead of the S&P 500’s roughly 80% gain. That outperformance hasn’t come from flashy moves, but from a consistent, methodical strategy that has held up well across different economic environments.

The retailer’s appeal goes beyond numbers. Costco is one of the few stores that inspires near-fanatical loyalty, with shoppers lining up for bulk bargains and staples like its famously cheap hot-dog combo. Its massive scale gives it buying power that few rivals can match, allowing it to keep prices low. Importantly, the real engine of the business isn’t merchandise margins, but the steady stream of cash from membership fees, which provides a reliable and recurring source of profit.

On dividends, Costco has quietly built an impressive record, raising its payout for 20 consecutive years. The yield may look modest at around 0.5%, but the company only uses about a quarter of its earnings to fund the dividend, leaving plenty of room to grow over time. On top of that, Costco has occasionally paid special dividends, which long-term shareholders have welcomed as a bonus.

Costco Wholesale Corporation (NASDAQ:COST) runs a global network of membership warehouses and online platforms, selling a mix of well-known brands and its own private-label products across a broad range of everyday categories.

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Disclosure: None.