Costco Dividend Stock Analysis for 2013

Costco Wholesale (COST) is a large membership warehouse retailer that sells a variety of bulk goods in several countries. -Seven Year Revenue Growth Rate: 9.4% -Seven Year EPS Growth Rate: 8.6% -Seven Year Dividend Growth Rate: 13.3% -Current Dividend Yield: 1.08% -Balance Sheet Strength: Strong

Costco is one of the lowest yielding stocks that I publish analysis articles on when not taking into account their recent huge one-time special dividend.

Overall, much like last year, I think Costco is a fantastic company and a respectable stock for long-term capital appreciation, but at the current time, I view it as fully valued with little or no margin of safety, and it doesnt offer a very appealing regular dividend yield.

With over 170,000 employees, Costco operates 622 warehouses. Of these, 448 are in the US and Puerto Rico, 85 are in Canada, 32 are in Mexico, 23 are in the UK, 13 are in Japan, 9 are in Taiwan, 9 are in Korea, and 3 are in Australia. In addition, Costco operates its large online retail site.

Sundries (cleaning supplies, tobacco, alcohol, candy, snacks, etc.) accounted for 22% of 2011 sales.

Hardlines (electronics, hardware, office supplies, beauty supplies, furniture, garden, etc.) accounted for 16% of sales.

Food accounted for 21% of sales.

Softlines (clothing, housewares, small appliances, jewelry, etc.) accounted for 10% of sales.

Fresh food accounted for 13% of sales.

Ancillary and other (gas, pharmacy, food court, optical, etc.) accounted for 18% of sales. (This is their fastest growing segment, as they put more of these areas in newer Costcos.)

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Costco Dividend Stock Analysis for 2013