Walmart and Chipotle recently underwent stock splits, reflecting their strong performance and management's confidence in their future. Costco Wholesale and MercadoLibre are now being considered as potential candidates for stock splits due to their impressive financial performance and growth prospects. Costco's unbeatable membership model and MercadoLibre's leadership in Latin American e-commerce make them strong contenders for future stock splits, signaling confidence in their future growth.
Costco Wholesale reported solid fiscal 2024 second-quarter results, but the stock fell in extended trading due to a slight miss on sales and margins, leading to pressure on shares. However, the results did not significantly alter the strong business model of Costco.
Motley Fool contributors recommend investing in DraftKings, Global-e Online, and Costco Wholesale for long-term gains. DraftKings is expanding its sports betting platform and venturing into the lottery market, while Global-e Online is seeing rapid revenue and gross merchandise value growth, with potential for net profitability. Costco Wholesale's resilient business model, international expansion, and reliable income stock status make it a strong long-term investment.
Costco Wholesale is issuing a special $15 dividend for shareholders, representing about a 2% dividend yield. Reinvesting the dividend into Costco stock has historically been a successful strategy, as previous special dividends have resulted in significant returns. The ex-dividend date for the special dividend is December 27, 2023. While Costco's revenue growth has been modest, its earnings per share (EPS) rose by 17%, making it an attractive investment. Although Costco's stock is currently expensive, an upcoming membership fee raise is expected to boost earnings. Overall, investors may consider establishing a position or reinvesting their dividends into Costco shares.
Costco Wholesale is issuing a special $15 dividend for shareholders, representing a 2% dividend yield. Reinvesting the dividend into Costco stock has historically been a successful strategy, with previous special dividends resulting in higher returns compared to the S&P 500. Despite facing difficult year-over-year comparisons, Costco's earnings per share rose by 17%, making it a worthwhile investment. Concerns about the stock's premium valuation may be mitigated by an upcoming membership fee raise, which will boost earnings. Overall, investors are advised to consider establishing a position or reinvesting their dividends into Costco shares.
Three Motley Fool contributors recommend Apple, Starbucks, and Costco Wholesale as no-brainer dividend stocks to buy and hold for the next 20 years. Apple's consistent dividend growth, attractive long-term growth prospects, and massive cash resources make it an appealing investment. Starbucks, with its dominant position in the coffee shop market, focus on digital innovation, and strong financial performance, offers a buy-on-the-dip dividend opportunity. Costco, known for its loyal customer base, membership model, and high-quality products, has a long history of delivering solid growth and returning cash to shareholders, making it a reliable cash machine.
CNBC's Jim Cramer suggests that eBay's weak business outlook strengthens the investment case for other retailers like Costco Wholesale and Amazon. eBay's light fourth-quarter guidance and warnings about softening consumer demand in Europe and the US have led Cramer to believe that investors may prefer companies offering more value. As a result, eBay's stock fell nearly 6% in early trading. Cramer's Charitable Trust, which includes shares of Costco and Amazon, has been performing well.
Starbucks, Williams-Sonoma, and Costco Wholesale are three dividend stocks that offer reliable and above-average dividend payments. Starbucks has a dividend yield of 2.1% and has paid and raised its dividend annually since 2010. Williams-Sonoma has a dividend yield of 2.9% and has nearly doubled its dividend payment over the last five years. Costco Wholesale has a dividend yield of 0.8% but has a long history of paying special dividends every few years and has raised its regular quarterly dividend every year since 2004. These companies possess profitable business models and a competitive advantage, making them a good long-term investment.
Shares of Richardson Electronics rose 0.7% after reporting better-than-expected earnings and a smaller backlog in its third fiscal quarter. Costco Wholesale's shares dipped 2.5% after reporting a decline in total comparable sales for March, but positive growth when excluding changes in gasoline prices and foreign exchange. Constellation Brands' shares rose slightly after beating earnings expectations. FedEx Corporation's shares rose 1% after announcing a restructuring plan to cut costs. Pinterest's shares rose 1.2% after receiving an outperform rating from Raymond James. Levi Strauss' shares dropped 4% despite beating expectations on earnings and revenue, as the company reaffirmed its annual guidance with a cautious outlook on the macro-environment.
