Costco Wholesale Corp. (NASDAQ:COST) announced plans on Tuesday to return roughly $13.3 billion to shareholders through a special cash dividend of $30 per share.
- COST stock is moving. Get all the details here.
The payout goes out on Dec. 4 to shareholders of record as of the close of business on Nov. 24. The amount doubles the $15 special dividend Costco paid in January 2024, which totaled about $6.7 billion.
Special dividends have become a habit for the Washington-based retailer. Costco also paid them in 2012, 2015, 2017 and 2020. Management tends to let cash pile up for a few years and then hand out a lump sum.
The board also reauthorized a stock repurchase program of up to $4 billion. The new plan runs through November 2030. It replaces the existing $4 billion authorization, which was adopted in 2023 and was scheduled to expire in January 2027. Costco had bought back $3.1 billion of stock under the prior program.
Membership fees anchor the Costco business model, and renewal rates have stayed high for years. Steady fee income gives the company room to reward investors without straining its balance sheet. The cash lands just ahead of the busy holiday shopping season.
COST Stock Price Activity: Costco Wholesale shares were up 1.65% at $1,083.73 during after-hours trading Tuesday, according to Benzinga Pro market data.
Photo: Shutterstock
See More:
Top Value Stocks
Recent Comments