$1,000 Stock... On Sale... BUY NOW!? OVER 10% Dividend GROWTH! 🚀

本站添加: 2026-05-30

[00:00:00]Welcome back to the Dividend Diplomats YouTube channel. You've got Bert the heart and Lanny, your favorite dividend investors of the world. Today guys, we're talking about a mega stock here, one soon to be dividend aristocrat stock, a dividend stock that pays a growing dividend to the north of over 10% growth.

[00:00:17]And they're up over 170% in 5 years. But is it undervalued right now?

[00:00:23]>> Subscribe. Give this video a thumbs up.

[00:00:26]Help out your boys, the Dividend Diplomats. Happy Thursday, everybody.

[00:00:29]This is stock we don't historically cover that much on this channel, but it's got a low yield and an insane growth rate, and the performance of this company has been phenomenal over the long stretch. And this is one a lot of people use here, including me.

[00:00:43]>> That's right, guys. So right now we're going to have to dive into Costco, ticker symbol COST. Bert is a member of Costco. Costco caught my radar because I feel like you know, when I was looking up some stocks and really dividend growth rates that are north of 10%. Yes, they have a dividend growth rate north of 10%. You know, I feel like they've been in this for the last probably 2 years in this like $900 to $1,000 range.

[00:01:11]I know it's going to sound crazy because yes, as of the May 22nd close, they are a $1,028 stock. They're actually, you know, up this year 20%, but that doesn't really speak much because they're actually up about 2% in the last year because they've had they've had a little bit of a pullback to finish off 2025, where actually they were down to about $870, which or actually $850. I don't know if you guys remember that. 52-week low is 844. So I don't know how it wasn't on anybody's radar.

[00:01:41]>> know if it's because they're it's just it's a stock that just grows so much.

[00:01:45]And to your point, what is unique about Costco, the price grows and earnings grow with it. So this is not as if the valuation is jumping up to an insanely high multiple. The multiple relatively stays the same because earnings they are an earnings and machine. That's what you want in a >> Yeah.

[00:02:00]>> company. Yeah, their trailing 12-month revenue growth is about 8.4%. The 5-year revenue CAGR is about 10 and 1/2% EPS 5-year CAGR is about 15% guys. So they they grow. They grow top. They grow bottom. They grow.

[00:02:16]>> I mean the thing is the loyalty of Costco shoppers is out of control.

[00:02:21]Um you drive by Costco when it's open the parking lot's always full. People are always lining up to get gas there.

[00:02:26]People get adjusted for the gas. And >> Especially right now.

[00:02:30]>> Yes, 100%. I even saw somewhere that they're starting to open up stand-alone gas stations. And if they do that the membership's just going to go through the roof just for people to save money on the gas. That's how many how much people want that. But they just why you don't drive 30 minutes to get Costco gas. That's the one market they haven't hit yet.

[00:02:46]>> Wow. Wow guys. So let's dive into the dividend diplomat stock screening metrics guys. Focus on the PE, the payout ratio, dividend growth, dividend yield. We're going to see if Costco is a stock to buy right now.

[00:02:57]You know, let's pause. Let us know if you guys own Costco here in the comments guys. And don't forget to like and subscribe. Appreciate the support.

[00:03:04]>> yeah. That price is $1,020.24.

[00:03:07]Their earnings per share is 50.02.

[00:03:10]So that PE ratio is 20.56.

[00:03:13]>> 20.56 guys. I mean I'm not going to say much more on a thousand-dollar stock and your PE is only 20 right now. It says something a lot about obviously where the earnings are at and everything's just been you know, gracefully following suit for Costco.

[00:03:33]Which we should actually get an earnings in about 2 weeks from them, I believe.

[00:03:36]>> I think this will be a very telling earnings for them and a lot of stocks.

[00:03:39]They're probably going to give you some great insight about the state of the consumer that I think will be very helpful.

[00:03:44]>> 100%. So when we get back into here this analysis, the dividend payout ratio is only about 12%.

[00:03:52]>> Yeah. Yeah, I mean it's insanely low. There's so much room to grow the dividend. Their 5-year dividend growth rate is 13.22% and they're almost an aristocrat.

[00:04:02]They've increased that dividend for 21 years.

[00:04:05]>> Now, the dividend yield is 0.57%.

[00:04:08]So, you're getting that dividend growth to make up for the low dividend yield on this consumer stock here.

[00:04:15]But, with a 13% dividend growth rate, I think you're okay with that low yield.

[00:04:20]>> Yeah, and the the nice thing is you wait for a low yield with Costco because they have something very interesting that they do. They don't do it every year.

[00:04:27]It's not consistent, but they do have special dividends that they announce from time to time.

[00:04:32]So, I think the last one is I pull up the history here. The last one was in January 2024, they announced a $15 special dividend. So, they will just surprise you with a massive special dividend every once in a while.

[00:04:42]>> You know, now the interesting piece too about Costco stock um is what position they have in ETFs. I know they're in I don't know if they're in SCHD, but I know for a fact obviously they're in VOO. I'm pretty sure they have a nice holding in VIG and I'm pretty sure they're within VY M.

[00:05:05]Um now, I don't know if they're in SCHD because of the yield. I think Bert's fact-checking me on that. So, you >> that.

[00:05:12]Yeah, I'm I was just typing it into the chat GBT quickly to see which ones have it.

[00:05:15]>> as as Bert's getting the information, I I think you also own probably indirectly some Costco by owning some big Vanguard ETFs like the S&P 500 and Vanguard Dividend Appreciation ETF that Bert and I both buy every single day. On some of the others, Bert, have you gotten any information yet?

[00:05:33]>> Yeah, we've got um some other ones. You were right, VIG has 2%. The largest exposure on here is VDC at 12.4%.

[00:05:42]VUG from Vanguard is another one in there. SCHG to your point. So, yeah, it's in a lot of ETFs in there.

[00:05:49]>> Yeah, a lot of ETFs, growth ETFs when you think about it, especially with the Vanguard Dividend Appreciation ETF. You want the appreciation plus that strong growth VIG. So, that's why it's a nice staple within there, guys.

[00:06:01]>> Yeah. So, overall, Lanny, what are you thinking about Costco stock right now?

[00:06:04]>> You know, despite a 20% increase, you know, I'm going to keep it on my watch list. Like you said, we have an earnings release coming, and I'd like to kind of take a look at that to see if maybe again, maybe you do get a 10% 15% correction. Maybe this thing does drop to $850, $900 again.

[00:06:19]>> Yeah, I have a bucket in my investing world of what I keep like filed to the side of like I call it like a flash crash list almost. It's like if the market just drops and you're like, "Where should I invest?" Boom, Costco is one of those companies. So, like to your point, if it drops 10 to 15% or the market just decides to one day take a boom, like and you just see something like out of nowhere, you don't know what to do, Costco. You will never regret it.

[00:06:41]>> Exactly, guys. So, let us know if you own Costco stock. Are you buying Costco stock right now? Are you just waiting to see if you have another dip on the Costco stock?

[00:06:49]>> Go on already, everybody. Subscribe to the channel. Give this video a thumbs up, and Lanny, what do you need to tell these diploma names out there?

[00:06:54]>> You're either with us or you're against us, Jack. That was Birth to Hurt and Lanny from the DED, over and out.