1 Future dividend aristocrats to buy now

The competition to develop and commercialize effective weight loss drugs will intensify in 2024.Eli Lilly's (Lee) Munjaro and Novo Nordisk (NVO) Wegovy, part of the new GLP-1 drug class, is making big waves by helping people Reduce up to 20% of body weight,on average.

and Obesity in US adults With a steady upward trend, it is no wonder that analysts think this way about the weight loss drugs market. Annual sales could rise to $50 billion That's a big opportunity.

costco wholesale (Fee)who always discovers the hottest trends – Remember those gold bars? – This month, I decided to join in on Wall Street's latest diet fad.warehouse club giant Partnered with telemedicine provider Sesame to launch unique weight loss program For members. For $179 per quarter, subscribers receive virtual doctor consultations and access to prescriptions for powerful weight loss drugs such as Ozempic and Wigovy, if deemed appropriate by a clinician.

The retail giant's move into weight loss drugs opens up an interesting new area of ​​growth, especially for emerging stocks. dividend aristocrat situation. Costco has raised its dividend for 19 consecutive years, which means it joins the elite club of dividend aristocrats, officially the S&P 500 index. ($SPX) By the end of this decade, it was a company that had been paying and increasing dividends for 25 years uninterrupted.

As Costco continues to innovate and expand its services, let's take a closer look at this growth stock for income investors.

Introduction to Costco Wholesale

Costco Wholesale has over 600 locations throughout the United States and a large presence worldwide. (Fee) We have solidified our position as a top player in the bulk buying market. The company's ability to leverage its vast purchasing power and streamlined operations allows it to provide exceptional value to its members. unwavering loyalty and drive its continued success.

COST stock has performed quite well The current bull market is up more than 8% year-to-date, with a 52-week return of 43.5%.

This price action easily outpaces Costco's closest rival, Walmart. (WMT) and bj wholesale (B.J.). That said, the stock's outperformance means that COST is valued higher than its peers, with forecast sales at 1.23 times and forecast earnings at 44 times.

In its latest earnings report, COST Bank Adjusted earnings were $3.71 per share. Revenue for the second quarter of 2024 exceeded Wall Street expectations. While sales of $58.44 billion weren't as strong as expected, it's important to note that Costco beat sales expectations across the board for the important holiday quarter, and membership fee revenue of $1.11 billion also came in slightly ahead of consensus. That's what happened.

For the full year, analysts expect Costco's revenue to expand 7.6% and EPS to continue growing at 9.4% in fiscal 2025.

Costco's reliable dividend

Costco has a strong track record of returns to shareholders, demonstrating financial strength and prudent expense management with a stable dividend policy.

The company currently pays $1.02 per share per quarter, giving it a forward yield of 0.58% at current levels. The dividend payout ratio is a modest 27.06%. This means that it saves a significant portion of its earnings for future growth, but still ensures that investors get a consistent piece of the pie.

And the keyword is “consistency”. COST has a 19-year track record of increasing dividends and appears committed to returning value to shareholders through these dividends.

But Costco hasn't closed the door on its growth era yet. Plans to open 31 new stores in 2024, Costco continues to make moves, including expansion in the U.S. and China. they again, Huge warehouse concept It is a blend of in-store shopping and online ordering, aiming to capture a larger portion of the market and increase sales. It's clear that Costco is thinking big and aims to keep its growth game strong.

What do analysts expect from Costco?

What do analysts think? The valuation of Costco stock is quite positive. The consensus rating is “Strong Buy,” an upward revision from “Moderate Buy” earlier this year. All 19 out of 29 analysts have rated it a “strong buy”, and all 3 have rated it a “strong buy”. are leaning toward a “modest buy,” and seven respondents are calmly choosing a “hold.” Therefore, it is no exaggeration to say that there is considerable optimism.

The average price target for Costco stock is $774.58. That's about 8.5% above Friday's closing price, but the most bullish forecast calls for it to rise to $905, implying a 26.8% upside.

Is Costco stock worth buying?

In short, Costco's smart approach to subscription-driven weight loss revenue, coupled with its strong revenue base and dedication to rewarding investors, makes it a hot topic for nearly every investor. It becomes. With analyst optimism growing for the stock, Costco offers an attractive combination of growth and passive income that's worth checking out this April.

On the date of publication, Evebu Jones I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
The competition to develop and commercialize effective weight loss drugs will intensify in 2024.Eli Lilly's (Lee) Munjaro and Novo Nordisk (NVO) Wegovy, part of the new GLP-1 drug class, is making big waves by helping people Reduce up to 20% of body weight,on average. and Obesity in US adults With a steady upward trend, it is no wonder that analysts think this way about the weight loss drugs market. Annual sales could rise to $50 billion That's a big opportunity.

costco wholesale (Fee)who always discovers the hottest trends – Remember those gold bars? – This month, I decided to join in on Wall Street's latest diet fad.warehouse club giant Partnered with telemedicine provider Sesame to launch unique weight loss program For members. For $179 per quarter, subscribers receive virtual doctor consultations and access to prescriptions for powerful weight loss drugs such as Ozempic and Wigovy, if deemed appropriate by a clinician.The retail giant's move into weight loss drugs opens up an interesting new area of ​​growth, especially for emerging stocks. dividend aristocrat situation. Costco has raised its dividend for 19 consecutive years, which means it joins the elite club of dividend aristocrats, officially the S&P 500 index. ($SPX) By the end of this decade, it was a company that had been paying and increasing dividends for 25 years uninterrupted. As Costco continues to innovate and expand its services, let's take a closer look at this growth stock for income investors.Introduction to Costco WholesaleCostco Wholesale has over 600 locations throughout the United States and a large presence worldwide. (Fee) We have solidified our position as a top player in the bulk buying market. The company's ability to leverage its vast purchasing power and streamlined operations allows it to provide exceptional value to its members. unwavering loyalty and drive its continued success.COST stock has performed quite well The current bull market is up more than 8% year-to-date, with a 52-week return of 43.5%.

www.barchart.com
This price action easily outpaces Costco's closest rival, Walmart. (WMT) and bj wholesale (B.J.). That said, the stock's outperformance means that COST is valued higher than its peers, with forecast sales at 1.23 times and forecast earnings at 44 times. In its latest earnings report, COST Bank Adjusted earnings were $3.71 per share. Revenue for the second quarter of 2024 exceeded Wall Street expectations. While sales of $58.44 billion weren't as strong as expected, it's important to note that Costco beat sales expectations across the board for the important holiday quarter, and membership fee revenue of $1.11 billion also came in slightly ahead of consensus. That's what happened. For the full year, analysts expect Costco's revenue to expand 7.6% and EPS to continue growing at 9.4% in fiscal 2025.Costco's reliable dividendCostco has a strong track record of returns to shareholders, demonstrating financial strength and prudent expense management with a stable dividend policy. The company currently pays $1.02 per share per quarter, giving it a forward yield of 0.58% at current levels. The dividend payout ratio is a modest 27.06%. This means that it saves a significant portion of its earnings for future growth, but still ensures that investors get a consistent piece of the pie.

And the keyword is “consistency”. COST has a 19-year track record of increasing dividends and appears committed to returning value to shareholders through these dividends. But Costco hasn't closed the door on its growth era yet. Plans to open 31 new stores in 2024, Costco continues to make moves, including expansion in the U.S. and China. they again, Huge warehouse concept It is a blend of in-store shopping and online ordering, aiming to capture a larger portion of the market and increase sales. It's clear that Costco is thinking big and aims to keep its growth game strong.What do analysts expect from Costco?What do analysts think? The valuation of Costco stock is quite positive. The consensus rating is “Strong Buy,” an upward revision from “Moderate Buy” earlier this year. All 19 out of 29 analysts have rated it a “strong buy”, and all 3 have rated it a “strong buy”. are leaning toward a “modest buy,” and seven respondents are calmly choosing a “hold.” Therefore, it is no exaggeration to say that there is considerable optimism.The average price target for Costco stock is $774.58. That's about 8.5% above Friday's closing price, but the most bullish forecast calls for it to rise to $905, implying a 26.8% upside.www.barchart.com
Is Costco stock worth buying?In short, Costco's smart approach to subscription-driven weight loss revenue, coupled with its strong revenue base and dedication to rewarding investors, makes it a hot topic for nearly every investor. It becomes. With analyst optimism growing for the stock, Costco offers an attractive combination of growth and passive income that's worth checking out this April.

On the date of publication, Evebu Jones I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/1-future-dividend-aristocrat-to-buy-now 1 Future dividend aristocrats to buy now