Is this income only from dividends?

No, the article notes that returns include both dividend income and capital appreciation from stock price growth.

What is the recommended investment horizon?

The article suggests a long-term horizon of 10 years to achieve the mentioned returns.

Is this a buy recommendation?

No, the article is analytical and does not provide a buy or sell recommendation; it highlights long-term growth potential.

Want $3,000 in Annual Passive Income? Invest $146,000 in Costco in July and Wait 10 Years

A Motley Fool article suggests that investing $146,000 in Costco (COST) in July could generate $3,000 in annual passive income after 10 years, driven by dividend growth and capital appreciation.

July 1, 2026

2 min read

Source: Motley Fool

Key Numbers

annual income goal

$3,000

initial investment

$146,000

holding period

10 years

A recent Motley Fool article highlights that investing $146,000 in Costco (COST) in July could yield $3,000 in annual passive income after 10 years, but the returns go beyond just dividends.

Details

The article focuses on a long-term investment strategy in Costco, where initial dividend income may be modest, but over time, as dividends grow, annual income could reach $3,000. Additionally, significant capital appreciation is expected.

Context

Costco is a retail giant known for consistent earnings growth and a rising dividend policy. Over the past decade, its dividend has grown at a compound annual rate exceeding 10%. This growth, combined with stock price appreciation, makes it attractive for income and growth investors.

What This Means for Investors

The article does not provide a buy or sell recommendation but highlights long-term growth potential. Investors seeking sustainable passive income may find Costco appealing, but they should be prepared to wait years for full returns.

Frequently Asked Questions

According to the article, investing $146,000 in Costco stock could yield $3,000 in annual passive income after 10 years.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.