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04/11/2024 |

Costco’s Dividend Update: What Investors Need to Know

This is an image of the Costco logo.

Costco’s Dividend Increase

COST (Costco Wholesale) has announced yet another quarterly dividend payment to arrive on May 10th, 2024 to shareholders of record on April 26, 2024. The payment of $1.16/share represents a $0.14 increase from the last dividend paid. With a history of regular dividend payments spanning two decades, the company’s recent 13.7% year-over-year increase brings its total annual dividend to $4.64 per share.

Special Dividends and Investor Outlook

Investors eyeing Costco should consider not only its regular dividend but also its track record of special dividend payments. While these special payouts are not guaranteed, Costco’s strong free cash flow and prudent financial management suggest they are likely to continue. Previous special dividends include a substantial $15 per share on January 12th, 2024.

Future Growth and Valuation Considerations

Looking ahead, Costco’s growth trajectory and financial strength bode well for further dividend increases. Despite a rich valuation, evidenced by a P/E ratio exceeding 47, the company’s continued sales growth and conservative payout ratio leave ample room for future dividend growth.