Does Costco's Huge Dividend Raise Make It a Screaming Buy?
For the most part, companies that consistently raise their dividends tend to do so at modest, if not incremental, rates. By contrast Costco (NASDAQ: COST) has enjoyed blasting its payout well higher, as its recent annual raises have tended to hover around the mid-teen percentages.
Sure enough, in mid-April, the big retailer declared that its upcoming quarterly dividend would be nearly 14% higher than its prior rate. dividend raises are an easy way to earn investor notice and, all things being equal, increase the stock's attractiveness. Let's take a look at this one to see if it helps make Costco stock an irresistible buy.
Costco's 2024 edition of its annual dividend raise lifts the payout to a quarterly rate of $1.16 per share. The first distribution at the new level will occur on May 10; shareholders of record as of April 25 will be paid on May 10.
Source Fool.com
