13 Best Dividend Growth Stocks With 10%+ Yearly Increases

8. Costco Wholesale Corporation (NASDAQ:COST)

5-Year Average Annual Dividend Growth Rate: 12.28%

Costco Wholesale Corporation (NASDAQ:COST) is a Washington-based retail company that offers a wide range of related products to its consumers. In fiscal Q1 2025, the company achieved a revenue of $62 billion, marking a 7.5% year-over-year increase. Net income rose to $1.8 billion, up from $1.6 billion the previous year. The company ended the quarter with a strong cash position, holding nearly $11 billion in cash and cash equivalents, compared to $9.9 billion in the prior quarter. In addition, Costco generated $3.3 billion in operating cash flow.

Costco Wholesale Corporation (NASDAQ:COST) had an outstanding 2024, with its stock rising by almost 39%. This impressive performance is a result of its steady growth and ability to stay resilient, even as other retailers struggled with increasing costs. Analysts are optimistic about the company’s future growth and strong track record. They highlight the company’s ability to outperform competitors by consistently gaining market share and leveraging its retailing-as-a-service model, which generates steady membership fees. Costco has built a strong competitive advantage through its membership-based pricing and bulk discount strategy, attracting a loyal and expanding customer base globally, as reflected in its recent quarterly performance.

Costco Wholesale Corporation (NASDAQ:COST) is one of the best dividend stocks on our list as the company has raised its payouts for 20 years straight. Its 5-year average annual dividend growth rate comes in at 12.28%. The company currently offers a quarterly dividend of $1.16 per share and has a dividend yield of 0.44%, as of February 8.