Is Costco About to Issue a Special Dividend?
Most large retailers boost their dividends in predictable ways, but Costco Wholesale (NASDAQ: COST) isn't your average retailer. The warehouse giant commits to returning a relatively small portion of its earnings each year in contrast to peers like . It then periodically surprises investors with windfall payouts. Another one of those big paydays might be on the way.
Costco's management team has decided that these special dividends are a better option than the typical return policy followed by most of its peers. "It's part of our DNA," CFO Richard Galanti said in a recent conference call with investors. Four prior special dividends have been paid in recent years, including a $10 per-share bonanza in late 2020. The previous one was three years earlier at $7 per share.
That history might suggest that these dividends are impossible to predict. But investors do have some clues suggesting a special dividend could be in the works. Galanti said last month that it's probably a matter of when, not if, for one. But the bigger tell is cash holdings.
Source Fool.com
Walmart Inc. Stock
The stock is an absolute favorite of our community with 82 Buy predictions and no Sell predictions.
With a target price of 74 € there is a slightly positive potential of 17.98% for Walmart Inc. compared to the current price of 62.72 €.
