5 Best Grocery Stocks to Buy Now

3. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 65

Costco Wholesale Corporation (NASDAQ:COST) operates a global network of membership warehouses, primarily under the “Costco Wholesale” brand. The company provides high-quality, brand-name products at significantly lower prices compared to traditional wholesale or retail outlets. As of January 15, Costco Wholesale Corporation (NASDAQ:COST) offers a quarterly dividend of $15.00 per share, resulting in a dividend yield of 0.60%. The company has consistently increased its dividend for the past 19 years, emphasizing its commitment to rewarding shareholders.

According to data from Insider Monkey, 65 hedge funds had long positions in Costco Wholesale Corporation (NASDAQ:COST) at the end of Q3 2023, compared to 67 funds in the previous quarter. Bridgewater Associates, led by Ray Dalio, is a notable stakeholder with 828,184 shares valued at over $467.8 million.

Tsai Capital Corporation stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its fourth quarter 2023 investor letter:

“Costco Wholesale Corporation (NASDAQ:COST) ($660.08 – up 49.0% for the year. Recent high $681.91): Costco operates more than 860 warehouses worldwide and provides its members with a deep value proposition, promising not to charge more than a 15% markup on goods versus its own cost. This in turn has resulted in an extremely loyal membership base of more than 70 million, over $1,900 in net sales per square foot, and high-margin, recurring membership fees. Since 2012, W. Craig Jelinek has been at the helm of Costco and has perpetuated the values and culture of the company’s founder, Jim Sinegal. And while Mr. Jelinek recently stepped down as Chief Executive Officer, we see little change under his successor, Ron Vachris, who has worked at the firm for more than 40 years, having started out as a forklift driver. In many ways, Costco is a cult (I mean that in a positive way), and its allure is only just beginning to spread to international markets, including China. With a stellar management team, strong returns on capital and ample opportunities for growth, domestically and internationally, we believe Costco will continue to compound earnings at a low double-digit rate.”