Costco Wholesale Corporation (NASDAQ:COST) is one of the best stocks to buy and hold for 20 years<\/strong>.<\/p>\n peter-bond-KfvknMhkmw0-unsplash<\/p>\n Ahead of the 2026 tax filing season, expectations are rising that U.S. consumer spending will receive a boost, potentially impacting value-oriented retailers like Costco Wholesale Corporation (NASDAQ:COST).<\/p>\n On January 18, 2026, Wolfe Research laid out its expectations for material tailwinds to tax refunds in 2026, projecting an incremental $75 billion in refunds for households earning under $200,000, roughly $500 per filer. These expectations rose after the IRS left withholding tables unchanged following the mid-2025 One Big Beautiful Bill (OBBB). Furthermore, the investment firm projects an additional $20 billion in refunds for $200,000-$500,000 earners, driven by additional SALT-related benefits, with payouts typically accelerating after February 15. Costco Wholesale Corporation (NASDAQ:COST) is included in Wolfe Research\u2019s Tax Refund Basket and is well-positioned to benefit from higher discretionary spending associated with refund inflows.<\/p>\n Meanwhile, three days earlier, Costco Wholesale Corporation (NASDAQ:COST) declared a $1.30 per share quarterly cash dividend, payable on February 13. This was preceded by Deutsche Bank\u2019s initiation of coverage of the stock on January 8, 2026, when the firm set a \u2018Buy\u2019 rating and a $1,044 price target. While citing short-term pressures from food disinflation, the firm expected stimulus-driven tailwinds in the first half of 2026.<\/p>\n Costco Wholesale Corporation (NASDAQ:COST) focuses on operating membership-based warehouse clubs across the U.S., Canada, and international markets. It offers bulk merchandise at low prices with a high-renewal, fee-driven business model.<\/p>\n While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock<\/strong>.<\/strong><\/p>\n<\/div>\n<\/div>