Costco (NASDAQ: COST) is the perfect option for those looking to invest in the stock market after the gain of profits through sales. The stock provides an opportunity for future growth and a strong potential for dividends.
As 2020 is soon going to end, numerous people have been making a list of resolutions for New Year’s. As expected, every person makes notes for their financial goals like saving money or making profitable investments.
The most important thing being your comfort and trust while investing your money in a specific stock. With Costco, it is a short-term investment and you can expect your results soon without having to wait for a long time before diving in again.
For starters, you can buy very few shares of Costco Wholesale that has amazing qualities and a lot of good things to offer in return.
COST Stock Valuation
Presently, stock prices are down since COST issued their Q1 sales report allowing investors to buy at a 4% lesser price as compared to the beginning of December.
The company has been offering a new range of merchandise of good quality for low prices including appliances, food, cleaning appliances, hardware, clothing, and countless other things. They have successfully attracted customers as their membership increased to 58.1 million in 2019 from 47.6 million.
In 2020, the company surged by 8% and 50% in the past 5 years resulting in a total of $5.4 billion. It gave a dividend yield of 0.7%. They had also paid an additional $7 in 2017 as a dividend.
The balance sheet of the firm shows short-term investments and cash of more than $13 billion and year-end debt of $7.6 billion.