Costco Wholesale Corporation (NASDAQ:COST) Announces $1.47 Quarterly Dividend

Key Points

• Costco объявила quarterly dividend of $1.47 per share, with shareholders of record on July 24 set to receive payment on August 7. The dividend implies an annual yield of about 0.6%.
• The company has raised its dividend for 22 straight years, and the payout remains well covered by earnings with a 29.5% payout ratio. Analysts expect Costco to continue covering dividends comfortably next year.
• In its latest quarterly results, Costco reported EPS of $4.93, narrowly missing expectations, while revenue of $70.53 billion came in above estimates. The stock was also slightly higher, opening up 0.6%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) declared a quarterly dividend on Wednesday, July 8th. Shareholders of record on Friday, July 24th will be given a dividend of 1.47 per share by the retailer on Friday, August 7th. This represents a c) annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th.

Costco Wholesale has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 22 consecutive years. Costco Wholesale has a payout ratio of 29.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Costco Wholesale to earn $22.46 per share next year, which means the company should continue to be able to cover its $5.88 annual dividend with an expected future payout ratio of 26.2%.

Costco Wholesale Stock Up 0.6%

Shares of NASDAQ COST opened at $953.13 on Thursday. The firm has a market cap of $422.69 billion, a price-to-earnings ratio of 47.94, a price-to-earnings-growth ratio of 4.59 and a beta of 0.88. The company's 50-day simple moving average is $986.93 and its 200-day simple moving average is $975.26. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale has a 52-week low of $844.06 and a 52-week high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the prior year, the business posted $4.28 earnings per share. Equities analysts predict that Costco Wholesale will post 20.38 EPS for the current fiscal year.

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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