Costco Wholesale Corporation (NASDAQ: COST) is not a cheap stock, and it has been trending at all-time highs, begging the question: How high can it go? The Q1 results, cash flow, balance sheet and the special dividend it allows suggest higher, much higher. While it is the premium stock in retail and membership clubs, it is also the premium producer of cash flow and free cash flow worth every penny you pay. Costco has been building a tidy hoard of cash for the last two years since it announced the last special dividend in Q4 2021. This time, the payment is worth $15 per share to investors or more than 2.25%, with shares trading near $650. .
Equity markets advanced following as-expected inflation data and a shift in Fed policy. The Fed indicated rate cuts are likely in 2024, marking the top of the rate hiking cycle. The bad news is that inflation continues to run hot so higher-than-normal interest rates will persist for some time. Even with the 75 basis points of cuts indicated, the market will end the year with rates at 4.5% or higher and double the rate going into the COVID-19 pandemic.
The S&P 500 is moving higher, and a Santa Claus Rally is likely; this week's PCE price index is a likely catalyst for the bulls. The risk is that markets remain below critical resistance at the all-time high which might cap gains for this year and next. However, if the S&P 500 can move above the all-time and sustain it through January, the odds are high that the market will continue to rally in 2024.
Costco Wholesale Corporation (NASDAQ: COST) is not a cheap stock, and it has been trending at all-time highs, begging the question: How high can it go? The Q1 results, cash flow, balance sheet and the special dividend it allows suggest higher, much higher. While it is the premium stock in retail and membership clubs, it is also the premium producer of cash flow and free cash flow worth every penny you pay. Costco has been building a tidy hoard of cash for the last two years since it announced the last special dividend in Q4 2021. This time, the payment is worth $15 per share to investors or more than 2.25%, with shares trading near $650.
If you're looking for an INCREDIBLE deal on stocks with huge growth potential, now is the time to look at this list our team prepared. (**By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. Full disclosures found here)
A donor-advised fund devoted to supporting the United Nations Sustainable Development Goals has leapt from being a relatively minor charity to one with an asset size comparable to behemoths like the Andrew W
Healthcare is one of the largest and fastest-growing sectors in the global economy, with many opportunities for investors. From breakthrough treatments to innovative technologies, healthcare companies are at the forefront of innovation and poised for growth in the years ahead. For those looking to invest in the healthcare sector, healthcare sector ETFs can offer a convenient and diversified way to gain exposure to this dynamic industry. These funds provide investors with a basket of healthcare-related stocks, ranging from pharmaceuticals and biotech firms to healthcare providers and m...
The Fed just created the single greatest income opportunity I've seen in nearly 20 years. I've put more than $1M of my own money into it. And plan to add another million! I even suggested my wife put her savings into it.
The Congressional Budget Office says it expects inflation to nearly hit the Federal Reserve's 2% target rate in 2024, as overall growth is expected to slow and unemployment is expected to rise into 2025, according to updated economic projections for the next two years
The Night Owl is an evening newsletter published by The Early Bird and powered by MarketBeat. The Night Owl covers top stories on the stock market and outlook on interesting stocks. If you give a hoot about the market, read your copy every Tuesday, Thursday, and Sunday evening.
American Consumer News, LLC dba MarketBeat 345 N Reid Place, Suite 620, Sioux Falls, SD 57103. contact@marketbeat.com
