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Why Costco Is an Underrated Dividend Stock

Why Costco Is an Underrated Dividend Stock

Costco Wholesale (NASDAQ: COST) is a solid business to invest in as the big-box retailer seemingly always finds ways to grow -- even amid a global pandemic or when inflation is high. The one feature of the stock that may disappoint investors is its dividend yield. At the current share price, it yields only 0.7%, so you would need to invest a whopping $143,000 to collect just $1,000 in dividend income over the course of a full year.