Is Costco About to Pay Another Special Dividend?
Costco Wholesale (NASDAQ: COST) isn't known as a dividend stock. After all, the company pays a dividend yield of less than 1% at the moment.
Investors like Costco because it has a wide economic moat in retail with its membership model, reputation for bargain prices on bulk goods, and long history of high customer satisfaction. Additionally, Costco's low prices and strength in groceries make it recession-proof as most of Costco's revenue comes from consumer staples or products that consumers buy regardless of the state of the economy.
While Costco's quarterly dividend may not turn any heads, the company has a long history of raising its payout every year, usually by more than 10%. However, there's another reason dividend investors may want to take a look at Costco. The company has paid a special dividend every few years, rewarding investors well beyond the regular quarterly dividend. Take a look at the chart below and see if you detect a pattern.
Source Fool.com
