5 Best Dividend Contenders to Buy in 2021

3. Costco Wholesale Corporation (NASDAQ: COST)

Number of Hedge Fund Holders: 56
Number of Years of Consecutive Dividend Increases: 17
Dividend Yield: 0.8%

Costco Wholesale Corporation (NASDAQ: COST) is a consumer staples company that manages warehouses in the US and internationally, alongside operating pharmacies, food courts, gas stations, and other consumer-oriented spaces. The company ranks 3rd on our list of the best dividend contenders to buy in 2021.

Bill Kirk, an analyst at MKM Partners, raised his price target on Costco Wholesale Corporation (NASDAQ: COST) shares this July to $385, keeping a Neutral rating on the stock. The analyst has cited the company’s strong June sales report while raising the price target.

In the fiscal third quarter of 2021, Costco Wholesale Corporation (NASDAQ: COST) had an EPS of $2.75, beating estimates by $0.47. The company’s revenue was $45.28 billion, up 21.50% year over year and also beating estimates by $1.46 billion. Costco Wholesale Corporation (NASDAQ: COST) has gained about 14.55% in the past 6 months and 9.17% year to date as well.

By the end of the first quarter of 2021, 56 hedge funds out of the 866 tracked by Insider Monkey held stakes in Costco Wholesale Corporation (NASDAQ: COST) worth roughly $4.01 billion. This is compared to 61 hedge funds in the previous quarter with stakes worth approximately $3.61 billion.

ClearBridge Investments, an investment management firm, mentioned Costco Wholesale Corporation (NASDAQ: COST) in its first-quarter 2021 investor letter. Here’s what they said:

“To take a more discretionary stance in retailing and make room for our additional purchases where we see better opportunities, we closed our position in Costco Wholesale. Costco was a big winner during the most restrictive periods of the COVID-19 lockdowns with its focus on staples, larger basket size, necessities and bulk items, and it remains an exceptional retailer in its category, with a sticky subscription base and non-U.S. growth ahead. However, the company is facing very tough comparisons as well as margin pressure in its core business and we believe its valuation has become stretched.”