Costco (COST) Gains Buy Rating From BofA on Strength of Pricing and Customer Loyalty

Costco Wholesale Corporation (NASDAQ:COST) is included among the 13 Best Performing Long Term Stocks to Invest in.

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On February 27, BofA reinstated coverage of Costco Wholesale Corporation (NASDAQ:COST) with a Buy rating. The firm set a $1,185 price target on the stock. The analyst said Costco’s strong appeal among higher-income consumers, combined with its industry-leading pricing, continues to attract shoppers focused on value. He added that Costco is “well-positioned to remain a leader in this K-shaped economy,” reflecting confidence in the company’s ability to perform across different consumer segments.

A recent CNBC report also highlighted Costco as one of the emerging dividend stocks identified by Wolfe Research. The company, known for keeping its rotisserie chicken priced at $4.99 for years, has shown similar consistency with its dividend policy. It has steadily increased its dividend over the past two decades. Costco most recently raised its regular dividend in April, increasing the quarterly payout to $1.30 per share from $1.16. The company has also paid large special dividends at times, which have added to its appeal among income-focused investors.

Investors have continued to move toward Costco during this year’s market volatility. The stock is up 18.33% in 2026 and currently offers a dividend yield of 0.5%. The steady performance has reinforced its position as a defensive retail name. Earlier this month, JPMorgan also pointed to Costco as a key beneficiary of tax season. Analyst Christopher Horvers said the following in a February 6 report:

“Demographically, COST is positioned to be the biggest winner into a stimulated consumer environment given geographic, member demographic, and mix differences.”

He also said Costco’s exposure to higher-income customers allows it to “screen the best in the club sector to expected spring tax stimulus, especially in light of COST’s big-ticket gen merch assortment.”

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that offer a wide range of nationally branded and private-label products across multiple categories.