Costco Slips Under $1,000 Again. Should You Buy This Dividend Powerhouse?
Over the past 20 years, Costco (COST) has delivered greater than 1,700% returns for investors, far outstripping the 420% returns by the S&P 500 ($SPX). For the past 21 years, Costco has also paid a dividend, raising it each and every year thereafter.
Recently, COST stock crossed above $1,000 per share, but after reporting fiscal second-quarter results, the stock slipped back under the threshold, even though it beat earnings expectations. Is now the time to buy? The company’s journey from regional warehouses to global dominance underscores its ability to reward patient shareholders with both capital appreciation and growing income, making the current moment worth serious consideration for investors seeking quality retail exposure.
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A Timeless Winner Regardless of Entry Point
Costco has been a good stock to buy at virtually any time, whether shares are up or down. The stock's long, steady upward trajectory means investors are holding profits no matter when they bought, as the business model consistently compounds value through scale, efficiency, and member loyalty.
Short-term volatility rarely derails the bigger picture because Costco’s focus on delivering unbeatable value keeps customers returning and revenue flowing. Shares of Costco briefly fell below $1,000 this month — opening at $996.50 on March 5 — but have already risen back above the $1,000 mark as of this writing. Market timers often overthink entry points, but history proves that holding through ups and downs has delivered market-beating results for decades.
The best recent buying opportunity for COST stock arrived this past December, when shares dipped to their lowest level in two years, offering a rare discount on a perennial winner. Those who seized that moment have still locked in even gains, yet anyone who purchased earlier sits on substantial unrealized profits today as well.
This resilience stems from Costco’s disciplined approach to expansion, cost control, and relentless innovation in the member experience, turning what could be cyclical retail risk into predictable long-term reward.
Strong Q2 Results Highlight Costco's Core Strengths
Costco released its fiscal Q2 earnings on March 5, and the results painted a picture of underlying strength despite some headline noise. Costco comfortably beat earnings expectations, reflecting tight expense management and healthy operational leverage even amid broader economic caution. Revenue came in slightly below consensus forecasts, a minor shortfall some observers linked to softer discretionary spending patterns.
