Costco Gives Stockholders A Holiday Present With Special Cash Dividend (2024)

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Costco Gives Stockholders A Holiday Present With Special Cash Dividend? ›

This will be Costco's fifth-ever special dividend. Previously paid out in 2012, 2015, 2017, and 2020 for the sums of $7, $5, $7, and $10 respectively, this latest payment of $15 in 2024 is its biggest yet. The aggregate amount of the payment will be approximately $6.7 billion.

Costco Wholesale Corporation announced on December 14, 2023, that it would have a “Special Dividend” of $15, payable on January 12, 2024 for those who owned shares on December 28, 2023.

The Company also announced that the Board of Directors has declared a special cash dividend on Costco common stock of $15 per share, payable January 12, 2024, to shareholders of record as of the close of business on December 28, 2023. The aggregate amount of the payment will be approximately $6.7 billion.

One of the ways Costco has rewarded its long-term shareholders over the years is through dividend increases. Last week, the company reported its latest dividend, which at $1.16 is 14% higher than the $1.02 it was previously paying.

Costco Wholesale Corporation ( COST ) pays dividends on a quarterly basis. Costco Wholesale Corporation ( COST ) has increased its dividends for 19 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future.

But even if you're not a Costco shareholder, you can still get in on the action. The special dividend's ex-dividend date is Dec. 27, 2023, meaning as long as you own shares at the close of the market that day, you will receive the dividend.

Special dividends are usually declared after exceptionally strong company earnings results as a way to distribute the profits directly to shareholders. Special dividends can also occur when a company wishes to make changes to its financial structure or spin off a subsidiary company to its shareholders.

Costco issued special dividends in 2012 ($7), 2015 ($5), 2017 ($7), 2020 ($10), and now $15 in 2023. So what would have happened to your money had you reinvested your dividend in Costco versus the market for these payouts?

Who is the largest shareholder of Costco? ›

The top individual insider shareholders of Costco are Craig Jelinek, Charles Munger, and Patrick Callans, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc., and State Street Corp.

Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Fmr Llc, Morgan Stanley, Geode Capital Management, Llc, Invesco Qqq Trust, Series 1, and Bank Of America Corp /de/ .

Costco is mainly owned by institutional investors, who own over 70% of shares. The largest shareholders in December 2023 are: The Vanguard Group (9.10%) BlackRock (6.90%)

ISSAQUAH, Wash., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced that its Board of Directors has declared a quarterly cash dividend on Costco common stock of $1.02 per share.

Costco has a conensus rating of Moderate Buy which is based on 17 buy ratings, 6 hold ratings and 0 sell ratings. What is Costco's price target? The average price target for Costco is $793.73. This is based on 23 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Ten Year Stock Price Total Return for Costco Wholesale is calculated as follows: Last Close Price [ 779.04 ] / Adj Prior Close Price [ 92.94 ] (-) 1 (=) Total Return [ 738.3% ] Prior price dividend adjustment factor is 0.81.

The retailer's management team prefers these large, one-time payouts over the more predictable dividend growth favored by rivals like Walmart. That's one more way that Costco stands out in the retailing niche.

Costco's strategy is to wait until it has excess cash on its balance sheet and then use that cash to pay a special dividend. This one is going to cost the company $6.7 billion. Other companies tend to use free cash flow on regularly scheduled dividends, which is more predictable.

The sign read, "Effective April 8, 2024, an active Costco membership card will be required to purchase items from our food court." This is the latest in a string of Costco policy crackdowns that have tried to combat social media trends sharing how to shop the warehouse store without a membership.