Costco Wholesale (NASDAQ: COST) has provided steady returns so far in 2026, climbing 11.5% as of this writing, but it's still being outperformed by the S&P 500's 13.7% return. Aside from an upcoming earnings report, it may not have many company-specific catalysts to send the stock price much higher this year. But even if it gets beaten by a few percentage points by the S&P 500 in 2026, that isn't a reason to overlook the long-term benefits of owning the stock.
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Continue » While it's not a recession-proof stock, Costco is a recession-resistant stock. The loyalty of its customer base is well known, with a renewal rate of 92.2% across North America. As it sells necessities in bulk, even during tight times, it runs a business that naturally makes customers more inclined to keep their membership.
In addition to its reliable revenue generation, Costco also pays a dividend. While the dividend yield is on the lower side at 0.6%, it still provides income, and that payout helps boost total return potential for shareholders. Aside from that quarterly dividend, Costco also pays special, one-time dividends every few years.
The last special dividend was issued in 2024 at $15 per share. Costco is scheduled to report its 2026 fourth-quarter earnings on Sept. 26, which could determine in the short term whether the stock, currently trading at $961 per share, rises toward $1,000 or falls toward $900. But as a company that generates reliable revenue, offers a dividend payout that can boost total return, and has paid a special dividend every few years, Costco could be worth considering for long-term investors.
While the stock has trailed the broader market in the short term, over three years it is roughly on par with the S&P 500 in price and total return. Over five years, Costco's total return of 115% far outclasses the S&P 500's 87%. Over 10 years, it's a 573% gain compared to 321%.
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