The U.S. market is full of great long-term options, many of which long-term Canadian investors are well aware of. But there is one top-performing U.S. stock that Canadians should be considering for their portfolios.
This is a stock boasting strong customer loyalty that has persisted across different market cycles and continued to grow. In fact, this top-performing U.S. stock stands out as one of the strongest businesses on the continent with a fiercely loyal membership base.
That stock to consider is Costco (NASDAQ:COST)
Source: Getty Images
Why Costco stands out as a top‑performing U.S. stock
Despite being a U.S.-based retail titan, Costco is well-known to Canadian shoppers and investors alike. The company provides a membership-based paywall to access its retail warehouses, where bulk goods and sheer variety overwhelm value-seeking shoppers.
For Costco, the goal is simple. Provide lower-cost items in bulk and passive membership renewals that lead to high-margin revenue streams. That model has enabled the retailer to expand its operations internationally across multiple countries.
That appeal, and more importantly, growth is important. In recent years, Costco has shown that it can continue to expand, grow sales and expand its membership income despite market challenges. In short, the retailer continues to deliver steady performance. That consistency persisted even when shoppers felt increased pressure in their wallets as a result of market volatility.
One of the key features of that appeal is Costco’s ability to keep prices low while maintaining strong traffic levels. The sheer scale of Costco’s operations allows it to negotiate favourable terms with suppliers, and its limited‑selection approach keeps operations streamlined.
Those efficiencies translate into consistent earnings growth that helps Costco perform well across different economic environments.
In its most recent second quarter of fiscal 2026, Costco reported net sales of US$68.2 billion, a solid 9.1% increase over the same period last year. This demonstrates that the retailer continues to capture consumer spending even in a tighter economic environment.
The impressive numbers led Costco to also hike its dividend by 13% in the most recent quarter. That being said, prospective investors should see Costco as a growth-first pick, which is reflected in its tiny 0.6% yield.
Investors should note that Costco is also known to provide occasional special dividends to investors.
Why Canadian investors benefit from owning Costco
For Canadian investors, adding Costco to a portfolio offers several advantages.
First, Costco provides exposure to the strength of the U.S. consumer market and, by extension, several other international markets. Not only is the U.S. market larger and more diversified than Canada’s, but the field of Canadian retailers that have global exposure is tiny at best.
Speaking of Canadian retailers, Costco’s global exposure also provides investors with a way to invest in a retailer that can offset some of the risk in being tied solely to the Canadian market. Costco’s commitment to and growth in Canada further bolsters that portfolio.
Next, there’s currency exposure, which can work in favour of Canadian investors. As a top-performing U.S. stock, Costco reports in U.S. dollars. Over longer periods, the greenback has appreciated relative to the loonie. As a result, should that trend continue, Canadian investors can expect to see enhanced returns from holding U.S. equities.
Finally, there’s the defensive appeal of Costco. The retailer’s focus on essential goods, competitive pricing, and fierce membership loyalty helps it perform well during economic slowdowns.
For Canadians seeking a dependable long‑term holding, Costco is a top-performing U.S. stock that offers growth, stability, and cross‑border diversification.
In short, it’s a stock that’s hard to ignore.
Will you buy this top‑performing U.S. stock?
Costco is a compelling, top-performing U.S. stock for Canadian investors to consider. Across the loyal member base, strong sales and growing international footprint, Costco offers plenty of long-term upside.
Throw in Costco’s growing dividend and occasional special payouts, and Canadian investors have a compelling long-term growth investment option to consider.
Costco, in my opinion, is a great add-on to any larger well-diversified portfolio.
