10 Best Consumer Staples Dividend Stocks To Invest In

1. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 95

Costco Wholesale Corporation (NASDAQ:COST) is a Washington-based retail company. In fiscal Q1 2025, the company reported $62 billion in revenue, marking a 7.5% increase from the previous year. Net income rose to $1.8 billion, up from $1.6 billion in the prior year. The company ended the quarter with a strong cash position, holding nearly $11 billion in cash and cash equivalents, an increase from $9.9 billion in the previous quarter. It also generated $3.3 billion in operating cash flow.

In the past 12 months, Costco Wholesale Corporation (NASDAQ:COST) has surged by nearly 39%. This strong performance highlights its steady growth and resilience, even as other retailers grapple with rising costs. Analysts remain optimistic about its outlook, citing its track record of outperforming competitors by consistently expanding its market share and leveraging its retailing-as-a-service model, which ensures stable membership revenue. Costco’s competitive strength lies in its membership-based pricing and bulk discount strategy, which has helped build a loyal and expanding global customer base, as reflected in its latest quarterly performance.

Costco Wholesale Corporation (NASDAQ:COST), one of the best dividend stocks, currently offers a quarterly dividend of $1.16 per share and has a dividend yield of 0.45%, as of February 24. The company holds a 20-year streak of consistent dividend growth.

Overall Costco Wholesale Corporation (NASDAQ:COST) ranks first on our list of the best dividend growth stocks. While we acknowledge the potential for COST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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