Here's How Many Shares of Costco You'd Need to Generate $10,000 in Yearly Dividends

Costco investors would need approximately 1,701 shares (requiring over $1.6 million investment) to generate $10,000 in annual dividend income. While the company has increased its quarterly dividend from $1.30 to $1.47 and grown dividends 227% over the past decade, the dividend yield remains low at 0.61%. Costco's strength lies in capital appreciation rather than dividend income, with the stock rising 128% in five years. However, the stock's P/E ratio of 48.6 is considered expensive, though management continues expanding with plans for 26+ new warehouses annually.