Top 10 Best Dividend Stocks on Robinhood

4. 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. The company had an exceptional 2024, with its shares climbing nearly 39%. This strong performance is supported by its consistent growth, as it has maintained resilience even while other retailers faced challenges from rising costs.

In fiscal Q1 2025, Costco Wholesale Corporation (NASDAQ:COST) reported a revenue of $62 billion, reflecting a 7.5% year-over-year growth. The company’s net income increased to $1.8 billion, up from $1.6 billion in the previous year. Costco also ended the quarter with a robust cash position of nearly $11 billion in cash and cash equivalents, compared to $9.9 billion in the previous quarter. Furthermore, it generated $3.3 billion in operating cash flow.

Analysts are positive about Costco Wholesale Corporation (NASDAQ:COST)’s growth prospects and past performance, noting that the company has secured a premium over its competitors through consistent market share gains and its effective retailing-as-a-service model that generates reliable membership fees. The company has established a solid competitive edge through its retail strategy, which includes membership-based pricing and bulk discounts. This approach has helped attract a growing, loyal customer base worldwide, as demonstrated by its recent quarterly results.

On January 23, Costco Wholesale Corporation (NASDAQ:COST) declared a quarterly dividend of $1.16 per share, which was in line with its previous dividend. Overall, the company has been growing its payouts for 20 consecutive years, which makes COST one of the best dividend stocks on Robinhood. The stock has a dividend yield of 0.47%, as of January 30.

The number of hedge funds tracked by Insider Monkey holding stakes in Costco Wholesale Corporation (NASDAQ:COST) grew to 75 in Q3 2024, from 71 in the previous quarter. The total value of these stakes is over $5.4 billion. Among these hedge funds, Chilton Investment Company was one of the company’s leading stakeholders in Q3.