COST - Costco NASDAQ Stock
Costco Unveils Special Per-Share Dividend of $7
Costco Wholesale Corp.'s (COST) board approved a special dividend of $7 a share, as the wholesale-club operator joined a number of companies making payouts to shareholders in anticipation of potential tax increases in the new year.
Shares were up 4.6% at $100.98 in recent premarket trading. Through Tuesday's close, the stock is down 7.6% from an all-time high in October.
The dividend increase also came as the company reported that its November same-store sales grew 6%, topping recent estimates of analysts polled by Thomson Reuters for 5.4% growth.
The special dividend is expected to cost the retailer an estimated $3 billion. Costco plans to provide more details about the special dividend during a conference call Wednesday at 10:30 a.m. EST.
The company in October reported that its fiscal fourth-quarter earnings rose 27% as higher membership fees helped to improve margins. Costco plans to release its fiscal first-quarter results Dec. 12.
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