11 Best Retail Dividend Stocks to Buy

2. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 96

Costco Wholesale Corporation (NASDAQ:COST) is a Washington-based retail company that operates membership-only big box warehouse club stores. The company stands out as one of the most resilient retailers in the industry, with membership fees playing a crucial role in its profitability. In FY24, the company generated $4.8 billion from these fees. Recently, it raised its base membership fee to $65, a change that will be reflected in the current fiscal year’s earnings. Moreover, its number of paid members has grown by 7% annually over the past two years.

In fiscal Q1 2025, Costco Wholesale Corporation (NASDAQ:COST) posted $62 billion in revenue, reflecting a 7.5% year-over-year increase. Net income grew to $1.8 billion, up from $1.6 billion in the same period last year. The company maintained solid liquidity, ending the quarter with nearly $11 billion in cash and equivalents, an increase from $9.9 billion in the previous quarter. In addition, it generated $3.3 billion in operating cash flow.

This strong cash position makes Costco Wholesale Corporation (NASDAQ:COST) one of the best dividend stocks. The company’s quarterly dividend comes in at $1.16 per share for a dividend yield of 0.50%, as of Marh 29. It holds a 10-year track record of dividend growth, providing income opportunities to investors.