Costco Wholesale Corporation (NASDAQ:COST) Shareholders to Receive $30.00 Special Dividend

Key Points

• Costco declared a $30.00-per-share special dividend. Shareholders of record November 24 are scheduled to be paid December 4; the ex-dividend date is also November 24.
• In its latest reported quarter, Costco earned $6.75 per share, beating the $6.54 analyst consensus, while revenue rose 11.1% year over year to $95.72 billion.
• Costco has raised its regular dividend for 22 consecutive years, and its annual dividend is expected to remain covered by earnings, with a projected payout ratio of 23.6%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) announced a special dividend on Tuesday, November 10th. Investors of record on Tuesday, November 24th will be paid a dividend of $30.00 per share by the retailer on Friday, December 4th. The ex-dividend date is Tuesday, November 24th.

Costco Wholesale has decreased its dividend by an average of 0.2% per year over the last three years and has raised its dividend every year for the last 22 years. Costco Wholesale has a payout ratio of 29.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Costco Wholesale to earn $24.94 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 Price Performance

NASDAQ COST traded up $11.30 during trading hours on Wednesday, hitting $1,077.44. The company had a trading volume of 478,668 shares, compared to its average volume of 2,202,735. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50. The firm has a 50 day simple moving average of $957.28 and a 200 day simple moving average of $973.36. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The firm has a market capitalization of $477.45 billion, a price-to-earnings ratio of 51.88, a PEG ratio of 4.71 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating 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 business had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. During the same quarter in the previous year, the firm earned $5.87 EPS. The company's quarterly revenue was up 11.1% compared to the same quarter last year. Equities research analysts expect that Costco Wholesale will post 22.70 earnings per share for the current year.

Insider Transactions at Costco Wholesale

In related news, EVP William Richard Wilcox sold 1,100 shares of the company's stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total value of $1,054,031.00. Following the transaction, the executive vice president directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of the firm's stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors have recently made changes to their positions in the stock. Edmond DE Rothschild Holding S.A. raised its position in Costco Wholesale by 28.6% in the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 3,961 shares of the retailer's stock worth $3,606,000 after purchasing an additional 880 shares during the period. Private Wealth Asset Management LLC boosted its holdings in Costco Wholesale by 252.8% during the 3rd quarter. Private Wealth Asset Management LLC now owns 1,591 shares of the retailer's stock valued at $1,448,000 after acquiring an additional 1,140 shares during the period. Alteri Wealth LLC grew its position in Costco Wholesale by 1.4% during the 3rd quarter. Alteri Wealth LLC now owns 1,807 shares of the retailer's stock worth $1,645,000 after acquiring an additional 25 shares during the last quarter. USS Investment Management Ltd lifted its position in Costco Wholesale by 5.2% in the third quarter. USS Investment Management Ltd now owns 73,385 shares of the retailer's stock valued at $66,818,000 after purchasing an additional 3,645 shares during the last quarter. Finally, Greenline Wealth Management LLC lifted its position in Costco Wholesale by 4.3% in the third quarter. Greenline Wealth Management LLC now owns 529 shares of the retailer's stock valued at $481,000 after purchasing an additional 22 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line. The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.

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