John Allison’s Unio Capital Portfolio: 5 Dividend Stocks

2. Costco Wholesale Corporation (NASDAQ:COST)

Dividend Yield as of July 3: 0.74%
Unio Capital’s Stake Value: $988,000

Costco Wholesale Corporation (NASDAQ:COST) is an American big-box store company that sells discounted goods through membership warehouses and also operates online. On June 30, the company closed on its $1.05 billion deal, purchasing a 45% minority interest in the Costco-Taiwan joint venture. The company now owns all of Costco Taiwan.

Unio Capital opened its position in Costco Wholesale Corporation (NASDAQ:COST) during the first quarter of 2018, with shares worth $343,000. During Q1 2022, the hedge fund reduced its position in the company by 6%, with its total stake amounting to $988,000. COST accounted for 5.22% of John Allison’s portfolio.

On April 13, Costco Wholesale Corporation (NASDAQ:COST) announced a 13% hike in its quarterly dividend to $0.90 per share. The company maintains an 18-year streak of dividend growth. The stock’s dividend yield stood at 0.74%, as of July 3. Atlantic Equities appreciated the strong earnings momentum of Costco Wholesale Corporation (NASDAQ:COST) in June and raised its price target on the stock to $615 with an Overweight rating on the shares.

According to Insider Monkey’s Q1 database, 61 hedge funds owned stakes in Costco Wholesale Corporation (NASDAQ:COST), up from 57 a quarter earlier. These stakes hold a collective value of over $5.4 billion.

ClearBridge Investments mentioned Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter. Here is what the firm has to say:

“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”