Costco (COST) Stock Reaches 52-Week High After 13% Dividend Increase

TLDR

• COST hit a 52-week high of $1,070.67 on May 18, bringing its year-to-date gain to 24%
• Costco raised its quarterly dividend by 13% to $1.47 per share, or $5.88 annualized
• The dividend yield is now above 0.60%, with 22 consecutive years of dividend increases
• Mizuho raised its price target to $1,100; TD Cowen holds a target of $1,175
• Speculation is growing over a potential special dividend, with the last one — $15 per share — paid in early 2024

Costco (COST) stock climbed to a 52-week high of $1,070.67 on May 18 after the company announced a 13% increase to its quarterly dividend. The stock is up 24% year-to-date.

Costco Wholesale Corporation, COST

The new quarterly dividend comes in at $1.47 per share, bringing the annualized payout to $5.88. That pushes the yield on COST just above 0.60%.

This is the 22nd consecutive year Costco has raised its dividend. The company is edging closer to Dividend Aristocrat status, which requires 25 straight years of increases.

The stock trades at a P/E ratio of 55, which reflects the premium investors are willing to pay. Costco currently carries a market cap of around $473 billion.

Mizuho raised its price target for COST to $1,100, keeping an Outperform rating. The firm pointed to strong fuel sales as a driver of U.S. comparable sales growth.

TD Cowen maintained a Buy rating with a price target of $1,175. The firm highlighted Costco’s ongoing work in store formats and technology.

William Blair also kept its Outperform rating, pointing to 7.8% comparable sales growth in March after adjusting for foreign exchange and gas price changes.

Not everyone is fully on board. Truist Securities reiterated a Hold rating, flagging valuation concerns even as it acknowledged the sales momentum.

Wall Street’s Take

The consensus among 22 Wall Street analysts is a Moderate Buy. That breaks down as 15 Buy, six Hold, and one Sell recommendation over the past three months.

The average price target sits at $1,098.44, implying roughly 3% upside from current levels.

The Special Dividend Question

While the base dividend hike is getting attention, the bigger question for some investors is whether a special dividend is coming. Costco has a track record of issuing large one-time payouts when cash builds up on the balance sheet.

These special dividends have historically landed every two to three years. The last one was $15 per share, announced in December 2023 and paid in early 2024.

With more than two years now passed since that payout, investors and analysts are watching the balance sheet closely.

Costco holds an overall “GREAT” health score according to InvestingPro’s metrics, which tracks the company as a top player in the Consumer Staples Distribution & Retail space.

The stock’s 12-month gain is a more modest 2.83%, but the year-to-date run of 24% shows the pace has picked up sharply in 2026.

The 52-week high print of $1,070.67 on May 18 marks the latest milestone in that run.

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