15 Best NASDAQ Dividend Stocks To Buy

5. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 75

Costco Wholesale Corporation (NASDAQ:COST) is an American retail company that offers a wide range of related products to its consumers. Analysts are optimistic about the company’s growth and past performance. They believe Costco has earned its premium over competitors by consistently gaining market share and building a retailing-as-a-service model that produces stable membership fees.

Costco Wholesale Corporation (NASDAQ:COST)’s retail strategy provides a strong and self-sustaining competitive advantage. By offering membership-based pricing and bulk item discounts, it is drawing in a steadily increasing base of loyal customers around the globe, as reflected in its recent quarterly earnings.

In the first quarter of fiscal 2025, Costco Wholesale Corporation (NASDAQ:COST) posted revenue of $62 billion, marking a 7.5% increase compared to the same quarter last year. The company’s net income rose to $1.8 billion, up from $1.6 billion in the previous year. Its cash position also remained strong, ending the quarter with nearly $11 billion in cash and cash equivalents, up from $9.9 billion in the prior quarter. In addition, the company 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) is one of the best dividend stocks as the company has been growing its payouts for 20 years running. Its quarterly dividend comes in at $1.16 per share for a dividend yield of 0.50%, as of January 15.

As per Insider Monkey’s database of Q3 2024, 75 hedge funds owned stakes in Costco Wholesale Corporation (NASDAQ:COST), up from 71 in the previous quarter. These stakes have a consolidated value of over $5.4 billion. Among these hedge funds, Chilton Investment Company was one of the company’s leading stakeholders in Q3.