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Costco Wholesale Stock Loses to 10-Year U.S. Treasury Notes on Yield. Here's Why It Wins on Everything Else.

The Motley Fool·
Costco Wholesale Stock Loses to 10-Year U.S. Treasury Notes on Yield. Here's Why It Wins on Everything Else.

While 10-year U.S. Treasury notes currently yield 5.2% compared to Costco's 0.6% dividend yield, the article argues Costco is the better long-term investment. A $10,000 investment in Costco 10 years ago would be worth nearly $75,000 with reinvested dividends, versus $11,800 from Treasury notes. Costco's growing business, rising dividend (up 13.2% annually over five years), and special dividends outweigh the Treasury's higher current yield for patient investors with a 10+ year horizon.

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