12 Best Safe Dividend Stocks for 2025

8. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 75

5-Year Average Payout Ratio: 27.3%

Costco Wholesale Corporation (NASDAQ:COST) is an American retail company that offers a wide range of related products to its consumers. The company’s retail approach secures a strong and self-reinforcing competitive edge. By offering membership-based pricing and discounts on bulk items, the company is attracting a growing number of loyal shoppers worldwide. This could be seen from its latest quarterly earnings. Moreover, the stock has surged by nearly 36% in the past 12 months.

In fiscal Q1 2025, Costco Wholesale Corporation (NASDAQ:COST) reported revenue of $62 billion, which saw a 7.5% growth from the same period last year. The company’s net income for the quarter also jumped to $1.8 billion, from $1.6 billion in the prior-year period. Its cash position was also stable as it ended the quarter with nearly $11 billion available in cash and cash equivalents, up from $9.9 billion in the previous quarter. The company also generated $3.3 billion in operating cash flow.

Madison Investments made the following comment about Costco Wholesale Corporation (NASDAQ:COST) in its Q3 2024 investor letter:

“Costco Wholesale Corporation (NASDAQ:COST) continues to demonstrate its commitment to sustainability by lowering its emissions. For example, it has converted its Kirkland Signature laundry packs from plastic tubs to a pouch. This has reduced plastic packaging by 80%. It has also moved to localize production of bulky items such as water, paper, and laundry detergents. Manufacturing these goods closer to the countries in which they are sold reduces emissions associated with shipping.”

Costco Wholesale Corporation (NASDAQ:COST) offers a quarterly dividend of $1.16 per share and has a dividend yield of 0.50%, as of January 13. It is one of the best dividend stocks on our list as the company has been growing its payouts for 20 consecutive years.

The number of hedge funds tracked by Insider Monkey owning investments in Costco Wholesale Corporation (NASDAQ:COST) grew to 75 in Q3 2024, from 71 in the previous quarter. The overall value of these stakes is more than $5.4 billion.