Retirement Stock Portfolio: 5 Consumer Stocks To Consider

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 67

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

The company currently offers a quarterly per-share dividend of $1.02, resulting in a dividend yield of 0.72% as of October 18. Impressively, Costco Wholesale Corporation (NASDAQ:COST) has consistently elevated its dividends for the past 19 years, underscoring its dedication to rewarding shareholders.

Insider Monkey’s data reveals that, by the close of Q2 2023, 67 hedge funds held long positions in Costco Wholesale Corporation (NASDAQ:COST), compared to 63 funds in the preceding quarter. Among these stakeholders, Ray Dalio’s Bridgewater Associates stands out as one of the most prominent, with 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.”