Costco, along with their subsidiaries operate membership warehouses that offer their members low prices on a limited selection of branded and selected private label products in a range of merchandise categories. COST buys the majority of their merchandise directly from manufacturers and route it to a docking consolidation points or directly to its warehouses. The docking points secure the container based shipments from COST's manufacturers and re-allocate the goods for shipment to their individual warehouses, generally in less than 24 hours!
Costco’s warehouse format are around 143,000 square feet. Their warehouses operate on a 7 day, 69 hour week. As of today, they carry an average of approximately 3,600 active stock keeping units per warehouse in their core warehouse business. Many consumable products are offered for sale only in case, carton, or multiple-pack quantities only.
Here are some important statistics to review if you are in the market for some shares of COST:
52 week $70.22 - $92.10 (currently selling at $88.25 - as of 4/26/12 market close)
Vol as of 4/26/12 / Avg. 2.45M/2.09M
Mkt cap 38.22B
P/E 25.66
Div/yield $0.24/1.09%
EPS 3.43
Shares 433.97M
Beta 0.66
Inst. own 79%
Costco is even offering home mortgages now! Click here to learn more. Also, today, Costco announced an expansion of their stock repurchase program of up to $4 billion dollars and increased their quarterly dividend! They will increase their dividend from $.205 to $.24 per share, or $.96 per share on an annualized basis. The dividend is payable May 27, 2011, to shareholders of record at the close of business on May 13, 2011. What! Are you serious?!?! Keep it coming COST!
I like COST not only because their customers are addicted and are somewhat fanatics of the store, but also Warren Buffet is a huge fan of their financials. I have heard from many people that they have had a great personal experience at their local Costco store. Additionally, Costco employees are happy and have a reputation to stay long term. COST has a basic business modal that works long term, which will provide your Roth IRA with a healthy dividend for the remaining years of your working career.. well into your retirement years.
Costco is positioned very well given the current economic environment. They attract a more upscale customer versus Walmart's philosophy. A large percentage of their clientele have yearly incomes over $100,000 and are college educated. That does not mean that there is not room for everyone though. COST is a safe place to buy high-end electronics, hearing aids, engagement rings and even funeral caskets. It never ends! They can sell their members just about anything.
While everyone is out buying 10 packs of Heinz ketchup or a 362 count bottle of Advil, why not save your money and invest those dollars into COST. Each time you think you need more than 1 blender or 10,000 rolls of toilet paper, purchase a smaller amount and then invest those dollars into COST. Do this year over year and watch your dividend payment compound and multiply month after month. This is a great way to secure your financial freedom so one day you can walk into Costco and buy whatever you want when ever you want. Make it rain!
"Pay yourself first!", that's what I have always said to all who ask. Why go to McDonald's and get a number 13 Mushroom Angus burger meal for $6.99 when you can pack your lunch for a few dollars, then invest the remaining dollars into MCD! I'm getting off topic I know, but just think of the amount of dividend payments you will receive when your older. It may seem like a few pennies today, but give it time and be consistent. $$$
COST is yet another SOLID dividend paying stock on the uptick and will solidify your retirement. Feel free to visit Costco's homepage, here, and their Investor Relations website, here. Also, check out these cool Costco videos below. Perform your own due diligence on this one folks, but get in with COST while you can. It's going to hit $100.00 at some point.
