Reliable grower — thin regular yield. A 0.59% regular yield on a 28.32% trailing payout is well covered and still compounding — $1.47 a quarter, raised from $1.30 in Apr. 2026, extending 21 years of increases in the dividend history. As income, though, the regular dividend is thin; Costco's occasional special dividends are irregular and are not counted in this yield.
Key risk: Membership and margin pressure — if renewal rates slip or merchandise margins compress, the earnings growth behind the raises slows with them.
Changes if: The regular yield stays under 1% — that is what keeps this a grower rather than an income card. A materially higher regular payout, not another one-off special, would change the verdict.
- ✓Payout-coverage check: 28.32% trailing payout ratio — low, leaving most earnings retained; the regular dividend is well covered.
- ✓Yield check: 0.59% indicated, regular dividend only — $1.47/qtr × 4 at the $1,003.32 close on Oct. 23, 2026. Occasional special dividends are excluded because they are irregular.
- ✓Dividend growth check: 21 years of increases in the dividend history; the latest raise lifted the quarterly dividend from $1.30 to $1.47 in Apr. 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.