A roughly $20,000 investment in Costco would buy 22 shares at the cited price, paying about $129 in annual dividends now. If Costco raises its dividend 11%–14% yearly for 10 years, those shares could generate $330–$420 a year by 2036; the projection is not guaranteed.
The estimate uses 11%–14% annual dividend growth, within Costco’s 7.7%–14% range over the prior decade. The 7.7% increase in 2020 was the decade’s smallest.
Costco also paid special dividends of $15 per share in 2023, $10 in 2020 and $7 in 2017. These irregular payouts are excluded from the estimate because, the article says, investors cannot count on them.
