How to Buy Costco Stock (COST) in 2026

How to buy Costco stock

You can buy shares of Costco in the same manner as you invest in any stock. Here's a step-by-step guide on how to buy Costco shares.

1. Open a brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
2. Search for Costco: Enter the ticker symbol "COST" into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should you invest in Costco?

Whether you should invest in Costco stock is ultimately a personal decision. There are two especially important factors to consider before buying this retail stock.

One key consideration is your investing style. Costco isn't viewed as an aggressive growth stock, even though it has performed quite well in recent years.

Another thing to keep in mind is valuation. Costco stock trades at a relatively high forward price-to-earnings ratio. That's typical, though; Costco usually trades at a premium compared to the broader market. Still, investors seeking a bargain might prefer to look elsewhere.

Is Costco profitable?

One thing investors don't have to worry about is Costco's bottom line. The giant discount retailer remains highly profitable.

In its 2024 fiscal year, Costco reported nearly $7.4 billion in net income. Sure, the company's revenue was $254.5 billion, resulting in a net profit margin of only 2.9%. However, low profit margins aren't unusual in Costco's industry.

Perhaps most impressive is how Costco's earnings have increased over time. And those higher profits have driven the stock higher, too.

Does Costco pay a dividend?

Yes, Costco pays a dividend, though its dividend yield of less than 1% isn't very impressive. However, there are other things for investors to like about Costco's dividend program.

The company has increased its dividend for more than 20 consecutive years. Costco has also rewarded investors periodically with special dividends.

Costco should be in good shape to keep its streak of dividend hikes going. The company's dividend payout ratio stands at less than 30%, indicating significant financial flexibility to raise dividends in the future.

Will Costco's stock split?

Costco's management team hasn't publicly stated that a stock split is being considered. However, it wouldn't be surprising if the company did split its stock in the not-too-distant future.

In January 2000, Costco conducted a 2-for-1 stock split. Its share price prior to the split was a little more than $91. Currently, Costco's share price is several times higher than its price back then. The company also had a 3-for-2 stock split in March 1992 and a 2-for-1 stock split in May 1991.

The bottom line

It's easy to invest in Costco stock using an online brokerage. The stock has been a big winner over the long run, and Costco’s ownership reflects that kind of long-term profile. The chances Costco can keep up its winning ways appear to be good.

FAQs