5 Best FMCG Stocks To Buy Now

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 67

Costco Wholesale Corporation (NASDAQ:COST) operates a global network of membership warehouses primarily under the “Costco Wholesale” brand, offering high-quality, brand-name products at significantly reduced prices compared to conventional wholesale or retail sources.

As of October 28, the company provides a quarterly per-share dividend of $1.02, resulting in a dividend yield of 0.75%. Costco Wholesale Corporation (NASDAQ:COST) has an impressive track record of consistently increasing its dividends for the past 19 years, highlighting its commitment to rewarding shareholders.

According to data from Insider Monkey, as of the end of Q2 2023, 67 hedge funds had long positions in Costco Wholesale Corporation (NASDAQ:COST), an increase from 63 funds in the previous quarter. Among these investors, Ray Dalio’s Bridgewater Associates is a prominent player, holding 807,709 shares valued at over $434.8 million.

RiverPark Advisors mentioned Costco Wholesale Corporation (NASDAQ:COST) in its Q2 2023 investor letter. Here is what the firm has to say:

“Costco Wholesale Corporation (NASDAQ:COST), founded in 1983, is the world’s third-largest retailer with 850 stores, $240 billion in revenue and 68 million members spread across North America, Europe, Asia, and the Southern Pacific Region. The company is known for its strong value proposition driven by high-quality low-cost offerings including a well-regarded private-label brand. Costco regularly ranks at the top of customer surveys related to brand trust, product price and quality, and all-around experience. Historically, 90% of the company’s shoppers renew their memberships, which generate more than 50% of operating income.

Through expanding market share, new store openings, increasing member productivity, and omnichannel expansion, we believe the company can grow revenues annually in the high single digit percentage range. This revenue growth should yield steadily growing margins and EPS growth in the low-to-mid-teens, which should drive shareholder returns in the same range.”