Costco is expected to declare a record special dividend later this year, a possibility that could be signaled when the warehouse club operator reports its fiscal fourth-quarter results on Sept. 24. The company has already reported net sales rose 11.3% to $93.9 billion for the 16 weeks of the fiscal period that ended late last month, fueled largely by a 10.7% jump in comps at its stateside stores. Costco has delivered 22 straight years of dividend hikes, but its 0.7% yield has been overshadowed by special distributions declared every two or three years: $15 a share on Dec. 27, 2023, $10 on Dec. 1, 2020, $7 on May 8, 2017, $5 on Feb. 5, 2015, and $7 on Dec. 6, 2012. With three years now elapsed since the last payout, the article argues a substantial one-time dividend is likely before the end of this year, though the last two December payouts were declared in November and December rather than at the earnings report itself. Any language during the Sept. 24 earnings call suggesting the cash Costco has been stockpiling since 2023 is growing would be a dead giveaway.
Costco Wholesale CorpCostco is expected to declare a record special dividend, a one-time capital return to shareholders, after reporting strong Q4 sales.
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