From The Motley Fool · James Brumley · · 1m 20s
Coca-Cola and Costco Join $400 Billion Club
Coca-Cola and Costco both hit $400 billion market cap, but only one will reach $1 trillion by 2036.
In brief
Coca-Cola and Costco both hit $400 billion market cap, but only one will reach $1 trillion by 2036. Coca-Cola's market cap surpassed $400 billion, but Costco has a better chance of hitting $1 trillion by 2036. Originally reported by The Motley Fool.
Coca-Cola hits $400 billion market cap
The Coca-Cola Company's market cap has just eclipsed $400 billion, moving within sight of Costco's $440 billion.
Costco's market cap at $440 billion
Costco Wholesale's market cap stands at $440 billion, with a record-breaking 84.1 million paid club memberships.
Coca-Cola's dividend history
Coca-Cola has raised its dividend payment for 64 consecutive years, with a forward-looking yield of 2.3%.
Costco's growth potential
Costco's membership renewal rates are consistently around 90%, with plans to open 28 more stores this fiscal year.
Coca-Cola's growth challenge
For Coca-Cola to reach $1 trillion by 2035, its stock would need to gain 250% annually, a stretch requiring nearly 10% growth.
Costco's growth advantage
Costco's 84.1 million paid memberships and 647 domestic stores position it for expansion without direct competition from Walmart.
Only one stock will hit $1 trillion by 2036
Coca-Cola and Costco both have realistic paths to $1 trillion, but only Costco's growth trajectory is sustainable for the next decade.
What to remember
Coca-Cola's market cap surpassed $400 billion, but Costco has a better chance of hitting $1 trillion by 2036.
