Costco Wholesale(NASDAQ: COST), Walmart(NASDAQ: WMT), and Amazon(NASDAQ: AMZN) have all carved out their own niche in serving retail shoppers. Walmart is known for low prices, Costco sells bulk items, and Amazon sells and ships pretty much anything you need.
As investments, they are also all unique in how they can fit into a portfolio. Finding the winner between the three comes down to holding periods and investing goals.
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The membership model that keeps making money
Walking through a Costco is often described as being on a treasure hunt, with some members even sharing their shopping trips on social media. With its bulk deals and private-label Kirkland Signature brand, Costco has built a loyal following that helps it boast an impressive membership renewal rate. As of its fiscal Q3 2026, Costco’s membership renewal rate in the U.S. and Canada was 92.2%, while its worldwide membership renewal rate was 89.7%.
Mostly known for its warehouse shopping experience, Costco is also seeing positive results from connecting more with its customers online. In the third quarter, e-commerce site and app traffic rose 37%, while digitally enabled comparable sales increased 21.5%. While the quarter was strong and the company generally met or slightly beat expectations, the report wasn’t enough to impress investors, and the stock price has recently dipped. Costco is richly valued, with a forward price-to-earnings ratio of 43.1, so expectations are high.
Still, over the last five years, Costco has done well by its shareholders, with the stock climbing over 150%. It’s also a dividend payer, and while that yield is on the smaller side at 0.6%, Costco is also known for paying out a special dividend from time to time. In 2024, the one-time special dividend payout was $15 per share.
Constant dividends with a side of tech
Walmart is the only Dividend King on the list, earning that title by increasing its dividend payout for 50 or more consecutive years. That shows stability in the company’s business model, because no matter what is going on in the economy, it has consistently rewarded its shareholders with dividend increases for the past 53 years. That comes from having a reliable business model.
Unlike some other Dividend Kings, however, Walmart is also known for providing stock price appreciation, particularly over the last five years, with shares also up over 150%, like Costco. That growth can continue over the long term as it infuses more technology into its business, such as its artificial intelligence (AI) shopping agent, Sparky. It also has growing revenue from its Walmart+ membership and a budding advertising division.
Follow the AI leader
Amazon has a retail presence like Walmart and Costco, and it also has a grocery component through its ownership of Whole Foods. But there’s an even bigger opportunity outside of the retail sector for Amazon.
Much as in the chip sector for AI, where most roads lead to Nvidia, that’s increasingly becoming true with Amazon’s cloud business. In its 2026 first-quarter earnings report, Amazon announced new Amazon Web Service (AWS) agreements with Anthropic, Meta Platforms, Nvidia, OpenAI, and Uber Technologies. In that report, Amazon also announced that AWS revenue increased 28% to $37.6 billion, which was its fastest revenue growth in 15 quarters.
For Amazon, the only catch is that it is judged more as a tech company than a retailer. Tech stocks are usually the first stocks investors rotate out of during periods of heightened economic uncertainty, as they are seen as risky.
The winning stock
Walmart, Costco, and Amazon are well-run companies, and each could be worth holding in a portfolio. But with the idea that you’d be buying a stock in 2026 to hold for years or decades for stock price appreciation, Amazon could offer the most potential thanks to its AI opportunities. It’s making heavy investments to win the AI race against other big tech companies, but as those capital expenditures start showing up as revenue and margins improve, that can help the stock price break out.
For long-term investors seeking reliable income, however, Walmart is worth considering. The dividend yield is on the lower side at 0.8%, but that indicates a sustainable yield. Plus, while Amazon could offer more long-term stock price appreciation because of its cloud services and involvement in AI, Walmart’s dividend payout can help increase its total return potential.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Meta Platforms, Nvidia, Uber Technologies, and Walmart. The Motley Fool has a disclosure policy.
