Will Costco (COST) be Able to Continue High Dividend Growth?

Will Costco (COST) be Able to Continue High Dividend Growth? Soumya Eswaran Thu, July 23, 2026 at 3:42 PM GMT+2 2 min read COST Bristol Gate Capital Partners , an investment management company, published its Q2 2026 investor letter for the "US Equity Strategy". A copy of the letter can be downloaded here .

The Strategy lagged the S&P 500 Total Return Index in the quarter in terms of returns, but outperformed in dividend growth. Despite debate over capital cycle returns, AI remained the dominant market theme, expanding from early adoption to broader enterprise adoption. The firm continues to focus on high-dividend-growth companies while maintaining discipline around valuation and earnings durability.

In addition, please check the Fund's top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Bristol US Equity Strategy highlighted Costco Wholesale Corporation (NASDAQ:COST). Costco Wholesale Corporation (NASDAQ: COST ) is a leading US-based multinational retailer that specializes in the operation of membership-only warehouses.

On July 22, 2026, Costco Wholesale Corporation (NASDAQ:COST) closed at $927. 31 per share, reflecting a market capitalization of $411. 24 billion.

Costco Wholesale Corporation (NASDAQ:COST) posted a one-month return of -1. 58%, and its shares lost 0. 70% over the past 52 weeks.

Bristol US Equity Strategy stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q2 2026 investor update: "Costco Wholesale Corporation (NASDAQ:COST) operates a membership-based model with a durable competitive moat in retail, anchored by industry-leading renewal rates and a value proposition that strengthens with scale. The recurring membership-fee stream is high-margin, predictable, and compounds alongside member growth and periodic fee increases. Backed by an experienced and capable management team, we believe this combination will translate into continued high dividend growth.

" JPMorgan Lowers Costco (COST) Price Target to $1,025, Maintains Overweight Rating Costco Wholesale Corporation (NASDAQ:COST) is not on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 107 hedge fund portfolios held Costco Wholesale Corporation (NASDAQ:COST) at the end of the first quarter, up from 106 in the previous quarter.  While we acknowledge the potential of Costco Wholesale Corporation (NASDAQ:COST) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.

If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . Story Continues In  another article , we covered Costco Wholesale Corporation (NASDAQ:COST) and shared Bell Global Equities Fund's insights on the company. In addition, please check out our hedge fund investor letters Q2 2026  page for more investor letters from hedge funds and other leading investors.

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