Is Now a Good Time to Buy Costco Wholesale Stock?

Costco Wholesale (COST -0.08%) has provided steady returns so far in 2026, climbing 11.5% as of this writing, but it’s still being outperformed by the S&P 500‘s 13.7% return.

Aside from an upcoming earnings report, it may not have many company-specific catalysts to send the stock price much higher this year. But even if it gets beaten by a few percentage points by the S&P 500 in 2026, that isn’t a reason to overlook the long-term benefits of owning the stock.

Image source: The Motley Fool.

Owning Costco stock is for the long haul

While it’s not a recession-proof stock, Costco is a recession-resistant stock. The loyalty of its customer base is well known, with a renewal rate of 92.2% across North America. As it sells necessities in bulk, even during tight times, it runs a business that naturally makes customers more inclined to keep their membership.

In addition to its reliable revenue generation, Costco also pays a dividend. While the dividend yield is on the lower side at 0.6%, it still provides income, and that payout helps boost total return potential for shareholders.

Aside from that quarterly dividend, Costco also pays special, one-time dividends every few years. The last special dividend was issued in 2024 at $15 per share.

Costco is scheduled to report its 2026 fourth-quarter earnings on Sept. 26, which could determine in the short term whether the stock, currently trading at $961 per share, rises toward $1,000 or falls toward $900.

Today’s Change

(-0.08%) $-0.75

Current Price

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$961.10

Key Data Points

Market Cap

$426BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$957.75 – $965.36

52wk Range

$844.06 – $1096.50

Volume

1.2M

Avg Vol

2.4M

Gross Margin

12.88%

Dividend Yield

0.58%

But as a company that generates reliable revenue, offers a dividend payout that can boost total return, and has paid a special dividend every few years, Costco could be worth considering for long-term investors. While the stock has trailed the broader market in the short term, over three years it is roughly on par with the S&P 500 in price and total return. Over five years, Costco’s total return of 115% far outclasses the S&P 500’s 87%. Over 10 years, it’s a 573% gain compared to 321%.

Clearly, long-term investing makes a difference.