Bulk-buying, bargain-hunting shoppers have made the members-only discount store concept wildly successful. Costco Wholesale (COST 0.88%) and BJ's Wholesale Club (BJ 4.26%) are translating that popularity into strong growth and record profitability.
Costco (COST 0.88%) is a store I frequent almost weekly, thanks to the good prices and the shockingly fresh produce. That said, I've never owned the stock, even though it has the type of impressive dividend record that attracts my attention.
Imagine if for $1 million you could buy a business that makes $100,000 in annual profit. In investing lingo, one would say this business trades at 10 times its earnings or at a price-to-earnings (P/E) ratio of 10.
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