Is This Stellar Dividend Growth Stock Under $1,000 a Screaming Buy?

"Dividend growth investing stands out as a reliable path to building long-term wealth. By focusing on companies that consistently increase their dividends, investors tap into compounding returns that outpace inflation and market volatility over decades. These payouts provide a steady income stream, reinvestment opportunities, and a buffer during downturns. The key is assembling a diversified portfolio of high-quality firms with strong balance sheets, competitive advantages, and a track record of raising dividends annually."

"Yet, even top performers face market whims. Take the dividend growth stock below: It just delivered stellar earnings, only to see shares dip afterward. Now trading at $915 per share, it's 15% below its 52-week high of $1,078 and only up a modest 1.6% in 2025. With the price now under the $1,000 mark, is it time to buy? A Growth Machine That Keeps Humming Costco ( NASDAQ:COST ) continues to dominate the warehouse club space, and its fiscal fourth-quarter results for 2025 last week underscore that momentum."

"The retailer posted net sales of $84.4 billion, up 8% from the prior year, and beat analyst expectations. Its gains were driven by robust comparable sales growth of 5.7% and a 15% surge in e-commerce, pushing full-year digital revenue past $19.6 billion. Membership fees - a high-margin staple - climbed 14% to $1.72 billion, fueled by fee hikes in key markets and upgrades to premium plans."

Dividend growth investing focuses on companies that consistently increase dividends, generating compounding returns that outpace inflation and market volatility over decades. Dividend payouts provide steady income, reinvestment opportunities, and downside buffering during market downturns. The strategy requires a diversified portfolio of high-quality firms with strong balance sheets, durable competitive advantages, and a consistent record of annual dividend increases. Patience amplifies returns as uninterrupted dividend growth compounds over years. Costco exemplifies this approach with robust results: quarterly net income of $2.61 billion, net sales of $84.4 billion (up 8%), 5.7% comparable-sales growth, a 15% e-commerce surge, and membership fees rising 14% to $1.72 billion.

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