#2 - Costco (NASDAQ:COST)
Another retailer that makes a great recession-proof stock is Costco Wholesale Corporation (NASDAQ: COST). Like Walmart, Costco carries both the items that consumers want and those that they need. The immediate difference between the two companies is that Costco is a warehouse club. That means there’s a membership fee. And as long as consumers are willing to pay that fee, they have an incentive to shop at Costco.
During the Covid-19 pandemic, Costco didn’t miss a beat on earnings or revenue. In fact, in many quarters, the company beat those numbers on a year-over-year basis – and continue to do so.
As of May 2023, Costco is not a cheap stock whether you look at price-to-earnings or share price. And with a dividend yield of just 0.81%, there are better options out there. But COST stock is up 151% in the last five years, easily outpacing the broader market. And the company has increased its dividend for 19 consecutive years which continues to boost an investor’s total return.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
Read More - Current Price
- $842.64
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $750.00 (11.0% Downside)
