News & Trending Investing News

This Potential Stock-Split Stock Could Make You Rich

Costco's soaring share price has sparked stock split speculation around the company in 2026.

By Jordan Major

Edited by Laura Hohenstein

Updated Feb. 6, 2026

Add Us On Google

When investors talk about stocks that have quietly built wealth over time, Costco is often among them. The warehouse club giant has delivered decades of steady growth, rewarded shareholders with rising dividends, and built one of the most loyal customer bases in retail.

Now, there's growing speculation that Costco could split its stock in 2026, a move that hasn't happened since the year 2000. While a stock split doesn't change a company's fundamentals, it can attract new investors and increase interest in a stock that has become increasingly expensive on a per-share basis.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Why investors are watching Costco in 2026

Costco (COST) stock has been on an impressive run. As of late January 2026, shares are up over 12% year to date, trading above $958, an increase of more than $100 since the start of the year.

Zoom out further, and Costco's share price numbers get even more striking, with COST stock up 170% over the past five years and more than 700% in the last ten years.

Despite this growth, Costco hasn't split its stock in more than two decades. Its last stock split came in 2000, when shares were trading at a fraction of today's price.

As Costco's share price approaches four digits, speculation has naturally grown that management could consider another split to make the stock more accessible to a broader range of investors.

Who really has the cheapest auto insurance in your area? Check your zip code here.

What is a stock split?

A stock split increases the number of shares outstanding while proportionally lowering the price of each share, so the total value of your investment doesn't change, only the way it's divided.

For example, in a 2-for-1 stock split, one $1,000 share becomes two $500 shares, and in a 5-for-1 split, one $1,000 share becomes five $200 shares.

If you already own the stock, you don't gain or lose money simply because of the split; the company's market value stays the same, and your ownership stake doesn't change.

In other words, a stock split doesn't make a company more valuable; it just changes how that value is packaged.

What a Costco stock split could mean for investors

While stock splits don't affect fundamentals, they can still matter psychologically and practically. For newer or smaller investors, buying a $950 stock can feel intimidating, even if fractional shares are available. A lower post-split Costco share price makes it easier for investors to buy whole shares, which many people prefer emotionally over owning fractions.

That increased accessibility can broaden the investor base, increase trading activity, and renew interest in a long-running stock. Historically, companies that split their stock often do so after extended periods of strong performance. In that sense, a split can act as a confidence signal, suggesting management believes long-term growth will continue.

That said, it's important to keep expectations realistic. A stock split alone doesn't drive earnings, revenue, or cash flow, and those are what ultimately matter.

Costco's long-term success

Costco's success isn't built on flashy innovation or rapid expansion. Instead, it's driven by a business model that consistently serves three key groups well: employees, customers, and shareholders.

The company is known for paying higher wages and offering strong benefits compared with many competitors in the retail industry, which can help reduce turnover and improve service quality.

Costco keeps markups on most products lower than those of traditional retailers. That value proposition creates deep loyalty, reflected in exceptionally high membership renewal rates. Membership fees generate predictable, recurring revenue, helping insulate Costco during economic slowdowns.

The wholesaler also began paying dividends in 2005 and has steadily increased them. Starting in February 2026, the company will distribute $1.30 per share quarterly, adding another layer of return for long-term investors.

Should you invest in Costco now?

Whether you already own Costco shares or are considering buying, it's important to separate stock split speculation from the company's actual investment merits. Costco has made many investors a lot of money, not because of splits, but because it grows steadily rather than aggressively, maintains pricing discipline, benefits from recurring membership revenue, and generates strong cash flow.

Even if Costco never splits its stock again, it could remain a solid long-term investment for patient investors focused on quality rather than quick gains. That said, Costco is no longer cheap by traditional valuation metrics.

Investors should consider their time horizon and the extent of their exposure to consumer and retail stocks, as with any investment, diversification matters.

Bottom line

Speculation about a potential Costco stock split in 2026 is understandable. At nearly $1,000 per share, the stock looks expensive, even if its underlying business remains strong.

But stock splits are largely nothing burgers for investors. They don't change the company's value, your ownership stake, or its long-term prospects. What truly matters is Costco's ability to keep doing what it has done for decades: reward employees, retain loyal customers, and deliver consistent gains for shareholders.

If you're evaluating money moves like investing in Costco, it's best to focus less on whether a split happens and more on whether the company fits your long-term investment strategy.

More from FinanceBuzz:

Help Protect Your Savings From Stock Market Volatility With Gold

American Hartford Gold Benefits

American Hartford Gold helps individuals protect their retirement by rolling over IRAs and 401(k)s into physical gold.
Includes FREE IRA rollover and storage for up to 3 years.
Get up to $20,000 in free silver on qualifying purchases.

Download your guide for free