Costco’s Strong Membership Growth Amid Rising Fees
Costco Wholesale has recorded significant membership growth, reaching 148.5 million cardholders and 82.9 million paid memberships as of May 10, 2026, marking a 4.1% increase from the previous year. Despite a fee increase, membership income grew by 10.7%, with renewal rates at 92.2% for U.S. members and 89.7% for Canadian members. The company’s stock has appreciated 145% over the past five years, outperforming the S&P 500’s 77% gain.
Costco plans to explore nontraditional store setups, including multifloor stores integrated with residential buildings, to expand its footprint in densely populated areas. The retailer has also been recognized for its reliable dividend income, recently issuing a special $15 dividend in January 2024 and raising its annual dividend for 22 consecutive years.
However, Costco’s stock is currently trading at a high valuation of 46.1 times projected earnings, raising concerns among investors. Despite this, the company remains a significant player in the retail market, buoyed by strong membership retention and unique growth strategies.
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