India, Aug. 20 -- Costco has raised its dividend, but the payout remains relatively modest for income-focused investors. The retailer increased its quarterly dividend by about 13.1%, from $1.30 to $1.47 per share on April 15, bringing the annual payout to $5.88 per share.

At a share price of around $960, a $10,000 investment would buy roughly 10.4 Costco shares. Those shares would generate just over $61 in annual dividend income based on the new payout, translating to a dividend yield of about 0.61%, according to The Motley Fool.

So, Costco is not really a stock for investors looking for high regular income. A 0.61% dividend yield is very low compared with many other dividend-paying stocks. Investors buying Costco should not expect the ...