Looking for a High-Yield Alternative to Costco Wholesale and Walmart? Consider This Dirt Cheap Dividend King Stock.

While artificial intelligence (AI) growth stocks have undoubtedly captured the broader market spotlight in recent years, Costco Wholesale (NASDAQ: COST) and Walmart (NASDAQ: WMT) are two high-profile value stocks that have given investors a lot to smile about as well.They have produced nearly identical five-year total returns -- with Walmart up 191% compared to 190% for Costco, 77.6% for the S&P 500, and 71% for the Nasdaq Composite . They dominate the consumer staples sector, accounting for 26.5% of the Vanguard Consumer Staples ETF -- which closely tracks the sector.But Walmart and Costco have two glaring flaws -- they are priced for perfection and have low dividend yields because their stock prices have outpaced their earnings and dividend growth rates. Walmart and Costco feature forward price-to-earnings (P/E) ratios of 43.4 and 48.7, respectively, or more than double the S&P 500's forward P/E of 21.2. Even some of the largest mega-cap growth stocks like Nvidia, Broadcom, Apple, Alphabet, Microsoft, Amazon, and Meta Platforms all have forward P/E ratios under 33.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool