Will Costco (COST) be Able to Continue High Dividend Growth?

2 months ago 39

Soumya Eswaran

Thu, July 23, 2026 astatine 8:42 AM CDT 2 min read

Bristol Gate Capital Partners, an concern absorption company, published its Q2 2026 capitalist missive for the "US Equity Strategy". A transcript of the missive tin beryllium downloaded here. The Strategy lagged the S&P 500 Total Return Index successful the 4th successful presumption of returns, but outperformed successful dividend growth. Despite statement implicit superior rhythm returns, AI remained the ascendant marketplace theme, expanding from aboriginal adoption to broader endeavor adoption. The steadfast continues to absorption connected high-dividend-growth companies portion maintaining subject astir valuation and net durability. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Bristol US Equity Strategy highlighted Costco Wholesale Corporation (NASDAQ:COST). Costco Wholesale Corporation (NASDAQ:COST) is simply a starring US-based multinational retailer that specializes successful the cognition of membership-only warehouses. On July 22, 2026, Costco Wholesale Corporation (NASDAQ:COST) closed astatine $927.31 per share, reflecting a marketplace capitalization of $411.24 billion. Costco Wholesale Corporation (NASDAQ:COST) posted a one-month instrumentality of -1.58%, and its shares mislaid 0.70% implicit the past 52 weeks.

Bristol US Equity Strategy stated the pursuing regarding Costco Wholesale Corporation (NASDAQ:COST) successful its Q2 2026 capitalist update:

"Costco Wholesale Corporation (NASDAQ:COST) operates a membership-based exemplary with a durable competitory moat successful retail, anchored by industry-leading renewal rates and a worth proposition that strengthens with scale. The recurring membership-fee watercourse is high-margin, predictable, and compounds alongside subordinate maturation and periodic interest increases. Backed by an experienced and susceptible absorption team, we judge this operation volition construe into continued precocious dividend growth."

JPMorgan Lowers Costco (COST) Price Target to $1,025, Maintains Overweight Rating

Costco Wholesale Corporation (NASDAQ:COST) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 107 hedge money portfolios held Costco Wholesale Corporation (NASDAQ:COST) astatine the extremity of the archetypal quarter, up from 106 successful the erstwhile quarter. While we admit the imaginable of Costco Wholesale Corporation (NASDAQ:COST) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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