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

Key Points

• Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The annualized dividend is $5.88, yielding approximately 0.6%.
• The dividend appears well covered, with a current payout ratio of 29.5%; Costco has also increased its dividend for 22 consecutive years.
• Costco reported stronger-than-expected quarterly results, including $6.75 in EPS and $95.72 billion in revenue, up 11.1% year over year. However, the stock’s roughly 47-times earnings valuation presents risk if sales or membership growth slows.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) announced a quarterly dividend on Wednesday, October 14th. Investors of record on Friday, October 30th will be given a dividend of $1.47 per share by the retailer on Friday, November 13th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th.

Costco Wholesale has decreased its dividend payment by an average of 0.2% annually over the last three years and has increased its dividend every year for the last 22 years. Costco Wholesale has a dividend payout ratio of 29.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect Costco Wholesale to earn $24.92 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 23.6%.

Costco Wholesale Stock Up 2.9%

Shares of COST opened at $982.00 on Thursday. The business's 50 day moving average is $931.75 and its 200 day moving average is $963.13. The company has a market capitalization of $435.15 billion, a PE ratio of 47.30, a price-to-earnings-growth ratio of 4.08 and a beta of 0.88. Costco Wholesale has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion for the quarter, compared to analysts' expectations of $94.97 billion. During the same period in the previous year, the firm earned $5.87 EPS. The firm's revenue was up 11.1% compared to the same quarter last year. Research analysts expect that Costco Wholesale will post 22.70 earnings per share for the current fiscal year.

More Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Strong sales momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results support the strength of Costco’s membership model, value proposition and e-commerce business. Costco September Sales Jump and Faster Digital Growth
• Positive Sentiment: Defensive-sector rotation: A hotter-than-expected inflation reading encouraged investors to favor retailers selling everyday necessities. Costco gained alongside Walmart and Target as a relatively defensive consumer stock. Retailers Benefit From Defensive Rotation
• Positive Sentiment: Dividend and earnings support: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. Separately, Erste Group raised its FY2027 EPS estimate to $22.80 from $22.67 and expects FY2028 EPS of $25.01. Costco Announces Quarterly Cash Dividend Costco analyst estimates
• Positive Sentiment: Expansion capacity: Analysts cited Costco’s approximately $21.3 billion liquidity cushion, manageable debt and strong cash generation as advantages for opening warehouses and funding digital investments. Costco’s Balance Sheet Gives It an Edge
• Neutral Sentiment: Reports about new-store proposals, younger members and popular limited-time products reinforce Costco’s brand appeal but are unlikely to materially affect near-term earnings.
• Negative Sentiment: Insider selling: EVP William Richard Wilcox sold 1,100 shares for approximately $1.05 million, reducing his direct holdings by 26.23%. The transaction is relatively small compared with Costco’s market value, but may weigh modestly on sentiment. Costco Executive Share Sale
• Negative Sentiment: Valuation risk: COST trades at roughly 47 times earnings, leaving limited room for execution errors if membership growth, consumer spending or sales momentum slows.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

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