2 Dividend Stocks to Double Up On Right Now | The Motley Fool

Dividend stocks can provide a meaningful path to enhancing your portfolio returns. Investing in businesses with a track record of profitability and favorable cash flows that have the financial foundation to support a continued payout can benefit your portfolio through both share price returns and dividend income. If you are searching for dividend stocks to double up on right now, here are two names to consider the next time you add to your investment portfolio . Image source: Getty Images. 1. Costco Wholesale Costco Wholesale ( COST +0.21%) has increased its regular quarterly dividend every year for more than two decades and counting. Its current annual regular dividend is $5.20 per share, and the last quarterly payment was $1.30 per share in November 2025. The company is known for periodically paying large, one-off special dividends to return excess cash to shareholders . Previous special dividends included $15 per share in December 2023 and $10 per share in December 2020. While Costco's dividend yield is low (less than 1%), this is because its stock price has soared due to its strong business performance through the years and has outpaced its dividend growth. The company habitually prioritizes reinvesting profits and issuing large, infrequent special dividends over consistently high regular payouts. While its regular dividend is modest, its high-margin membership model generates huge cash flow to allow for these sporadic, large cash returns, which significantly boost shareholder value over time, even if the stated yield looks small. Case in point: Costco delivered a total return (including dividends) of nearly 150% over the trailing five-year period. Costco also maintains a low payout ratio of approximately 27%, so the company continues to retain ample earnings for growth and reinvestment. Unlike traditional retailers, most of Costco's profitability comes from predictable, high-margin annual membership fees, which reached over $1.3 billion in Q1 fiscal 2026. NASDAQ: COST Key Data Points This reliable revenue stream allows the company to operate its warehouses on extremely thin margins and pass on these significant savings to its members. This value proposition fosters fierce customer loyalty, with consistently high renewal rates (around 92% in the U.S. and Canada). Even during periods of inflation or economic uncertainty, consumers remain loyal because the bulk purchasing and low prices make the membership a valuable investment that helps them save money. Costco also maintains a limited, curated product selection (around 4,000 SKUs compared to tens of thousands at other retailers), which provides it with enormous purchasing and negotiating power with suppliers and boosts operational efficiency. Beyond groceries, its services, including gas stations, optical centers, and e-commerce, drive additional traffic and revenue streams that further insulate the company from dependence on any single product category and cater to a wide range of member needs. For the fiscal year ended Aug. 31, 2025, Costco's annual revenue reached $275.2 billion, an 8.2% increase from the prior year. Its most recent quarterly revenue (Q1 Fiscal 2026) was $67.31 billion, a similar increase of 8.3% year over year. Net income for fiscal...

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