The Allure of Investing in High-Yield Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Dividend Growth Potential: Costco Wholesale showcases a strong profitability and future growth potential with a 0.5% dividend yield and 20 consecutive years of dividend increases, as it only allocates a quarter of its earnings to dividends, indicating room for higher payouts ahead.
- Global Brand Advantage: Coca-Cola, known as a 'Dividend King', has raised its dividend for 62 consecutive years, currently offering a 2.77% yield, supported by its strong brand presence and mid-single-digit growth rate in the global beverage market, suggesting significant future growth opportunities.
- Stable Income Source: Altria Group, with a high dividend yield of 6.8% and a history of 54 years of dividend increases, demonstrates robust pricing power and profitability despite declining smoking rates, making it attractive for income-seeking investors.
- Attractiveness of Consumer Sector: These three companies excel in the consumer sector, representing different investment styles, allowing investors to achieve stable cash flow and potential capital appreciation, reflecting the critical role of consumer spending in the economy.
Analyst Views on COST
Wall Street analysts forecast COST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COST is 1061 USD with a low forecast of 769.00 USD and a high forecast of 1205 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 977.670
Low
769.00
Averages
1061
High
1205
Current: 977.670
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
