The Best Blue Chip Stock to Buy in November and Hold for 10 Years

Costco's stock has experienced an impressive 600% increase over the past decade, with reinvested dividends delivering a total return of 728%, significantly outpacing the S&P 500's 326% return. Despite the potential reluctance to invest in its stock after such substantial gains, I believe it remains the optimal blue chip stock for purchase and long-term holding, boasting three key advantages.

Costco maintains low product margins by generating profits primarily from recurring, higher-margin membership fees. As long as the company continues to attract new cardholders and retain existing ones, its profits will continue to rise.

At the close of fiscal 2026, Costco boasted 150.4 million cardholders, marking a 3.6% increase from the previous year. Furthermore, its worldwide renewal rate surged 10 basis points year over year to 89.8%, a remarkable figure considering the company only had 105.5 million cardholders at the end of fiscal 2020. Over the same period, Costco expanded its warehouse count from 795 locations to 939, illustrating its growth trajectory and setting it apart from other brick-and-mortar retailers who often close stores to stabilize margins.

Comparing Costco's comparable store sales (comps) is crucial to assess its performance, as it specifically measures the sales growth of stores open for over a year. In fiscal 2026, Costco's comps grew by 8.4% (6.6% adjusted, excluding fuel sales and forex), marking its 17th consecutive year of positive comps growth. Looking forward to fiscal 2029, analysts project Costco's revenue and earnings per share (EPS) to grow at compound annual growth rates (CAGRs) of 8% and 10%, respectively.

Although Costco's stock price may appear high at 46 times earnings this year, its scale, customer loyalty, and resistance to inflation make it a justified valuation.

Given these factors, I am confident that Costco's stock will continue to outperform the S&P 500 for at least the next decade, making it an excellent investment choice for those seeking long-term growth.