Walmart vs Costco: Which Retailer Offers More Reliable Income
Walmart (WMT) and Costco Wholesale (COST) are both considered recession-resistant businesses due to their essential products. Both companies offer quarterly dividend payouts, but with different characteristics.
Walmart is a Dividend King, having increased its payout for 53 consecutive years, offering greater reliability and consistency for income. In contrast, Costco has paid special dividends every few years, with the most recent being $15 per share in 2024, $10 per share in 2020, $7 per share in 2017, and $7 per share in 2012.
The author prefers Walmart over Costco due to its consistent dividend payments, but notes that the special dividends from Costco are alluring. However, these special payouts are not guaranteed to happen at a certain time, making it difficult to rely on them for income.