-
Costco Wholesale Corporation (COST $856.77)
-
Vanguard U.S. Dividend Appreciation Index ETF (VGG $102.97)
Q: Hello,
I thought Costco's results were good, yet stock is down. Any comments on the results which would bring the stock price down? Also, would vgg on tsx be a good way to invest in US dividend paying stocks. If not, can you suggest one in Canadian dollars please. Much appreciated. Happy Holidays.
I thought Costco's results were good, yet stock is down. Any comments on the results which would bring the stock price down? Also, would vgg on tsx be a good way to invest in US dividend paying stocks. If not, can you suggest one in Canadian dollars please. Much appreciated. Happy Holidays.
5i Research Answer:
We would be very comfortable owning VGG for dividend-growth US stock exposure. On COST, this answer may be helpful. It is not so much that something is wrong with COST, it is just that it had a (very) premium multiple for a relatively slower-growth company. But we think it starts looking quite good in the $850 range.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in COST, VGG.