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Here's What I'm Doing With Costco's $15 Special Dividend


One of the biggest retailers just shared huge news. It is issuing a special $15 dividend for shareholders. This is certainly a welcome turn of events for Costco Wholesale (NASDAQ: COST) investors, representing about a 2% dividend yield at the current stock price. But what should investors do with this handsome payout? Well, you've got a couple of options. Let's consider them.

The main decision investors have to make with a dividend payout is whether to pocket the cash or reinvest it in the company. By pocketing it, you're looking to deploy it to another investment or maybe spend it. Regardless, if you don't reinvest it now, you likely won't use it to buy Costco shares later.

But buying Costco shares with its special dividend has been a winning strategy. This isn't the first, and likely won't be the last time Costco has issued a special dividend. Costco issued special dividends in 2012 ($7), 2015 ($5), 2017 ($7), 2020 ($10), and now $15 in 2023.

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Source Fool.com

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