Costco (COST) Stock Hits 52‑Week High After 13% Dividend Increase

TLDR

• COST reached a 52-week high of $1,070.67 on May 18, marking a 24% gain year-to-date
• Costco increased its quarterly dividend by 13%, setting it at $1.47 per share, or $5.88 annualized
• The dividend yield now exceeds 0.60%, with the company having raised dividends for 22 consecutive years
• Mizuho updated its price target to $1,100; TD Cowen maintains a target of $1,175
• Growing speculation surrounds the possibility of a special dividend, with the last one—$15 per share—issued in early 2024

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(SeaPRwire) –   Costco (COST) stock surged to a 52-week high of $1,070.67 on May 18 following the announcement of a 13% increase in its quarterly dividend. The stock has risen 24% year-to-date.

Costco Wholesale Corporation, COST

The revised quarterly dividend is set at $1.47 per share, resulting in an annualized payout of $5.88. This adjustment brings the yield on COST just above 0.60%.

This marks the 22nd straight year that Costco has boosted its dividend. The company is approaching Dividend Aristocrat status, which requires 25 consecutive years of increases.

The stock trades at a P/E ratio of 55, reflecting the premium investors are willing to pay. Costco currently holds a market capitalization of approximately $473 billion.

Mizuho upgraded its price target for COST to $1,100, retaining an Outperform rating. The firm cited robust fuel sales as a key contributor to U.S. comparable sales growth.

TD Cowen kept a Buy rating and maintained its price target of $1,175. The firm emphasized Costco’s ongoing advancements in store formats and technology.

William Blair also sustained its Outperform rating, referencing 7.8% comparable sales growth in March after accounting for foreign exchange and gas price fluctuations.

Not all analysts are optimistic. Truist Securities reaffirmed a Hold rating, citing valuation concerns despite acknowledging strong sales momentum.

Wall Street’s Take

Among 22 Wall Street analysts, the consensus rating is Moderate Buy—comprising 15 Buy, six Hold, and one Sell recommendations over the past three months.

The average price target stands at $1,098.44, suggesting roughly 3% potential upside from current levels.

The Special Dividend Question

While the regular dividend hike has drawn attention, many investors are focused on whether a special dividend may be forthcoming. Costco has a history of issuing substantial one-time payouts when balance sheet cash accumulates.

These special dividends typically occur every two to three years. The most recent was $15 per share, announced in December 2023 and distributed in early 2024.

With more than two years having passed since that payment, both investors and analysts are closely monitoring the company’s balance sheet.

According to InvestingPro’s metrics, Costco holds an overall “GREAT” health score and ranks among the top companies in the Consumer Staples Distribution & Retail sector.

The stock’s 12-month return is 2.83%, but the year-to-date performance has accelerated sharply, reaching 24% in 2026.

The record 52-week high of $1,070.67 established on May 18 represents another milestone in this upward trajectory.