Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

The Surprising Reason Why Costco's $15 Special Dividend Could Be a Big Mistake

TheMotleyFool

0 0

The Surprising Reason Why Costco's $15 Special Dividend Could Be a Big Mistake: https://g.foolcdn.com/editorial/images/759038/gettyimages-175494583-1200x800-5b2df79.jpg

Costco Wholesale (NASDAQ: COST) made a splash when it announced a $15 per share special dividend on Dec. 14. Costco has gained a reputation for these surprise announcements, as it pays a rather small ordinary dividend and then occasionally distributes a much larger one-time payment.

Costco has said that special dividends are a part of its DNA. But there are better uses of capital that could reward investors even more. Here's why Costco's special dividend isn't as good as it seems, what Costco could learn from other top companies, and whether the retail stock is a buy now.

Image source: Getty Images.

Source Fool.com

Like: 0

COST

Share