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Costco highlights membership model as Bristol US Equity Strategy weighs outlook
Bristol Gate Capital Partners said its US Equity Strategy lagged the S&P 500 total return in the quarter but outperformed on dividend growth.
Bristol Gate Capital Partners, in its Q2 2026 investor letter for the US Equity Strategy, said its approach lagged the S&P 500 Total Return Index on overall returns during the quarter, even as it reported outperformance in dividend growth.
The firm said AI remained the dominant market theme, moving from early adoption to broader enterprise usage, and it continues to focus on high-dividend-growth companies while keeping discipline around valuation and earnings durability.
In that context, Bristol highlighted Costco Wholesale Corporation as a leading US membership warehouse operator. According to the letter, Costco closed July 22, 2026 at $927.31 per share and had a market capitalization of $411.24 billion.
The outlet’s discussion emphasized Costco’s membership-based model, including renewal rates and a recurring membership-fee stream described as high-margin and predictable, and it cited those factors as support for continued high dividend growth.
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