Costco announced yesterday that they would be increasing the quarterly dividend for shareholders of record at the close of business on May 16, 2014. The dividend will rise to $0.355 per share, up from $0.31. That is an increase of right around 14.75%, which is quite good. On a yearly basis, this represents an increase from $1.24 to $1.42 per share. This increased dividend will be paid out on May 30, 2014.
This is great news for those of us that love Costco so much we’ve bought their stock in bulk too. Costco is one of the few stocks that I actually own (not including stuff in mutual funds) because I figured that I loved the store so much I should own a little piece of it. Of course, my stock holding in Costco is pretty tiny, but still, it has done quite well for me since I purchased it since the share price has increased quite a bit and the dividend has almost doubled.
Since 2008, the first full year that I was writing this blog, the dividend has increased from $0.16 per share to $0.355, or 120% which is an increase of 14% per year on average. Similarly, the share price has increased quite a bit too in that time, going from $72.14 (May 2, 2008) per share to the current price of $115.68, an increase of $43.54 or 60.35% which is an increase of 8% per year on average. That increase in share price is more than two times the growth of the Dow Jones during the same time, but it has grown about 6% than the NASDAQ. Of course, Costco has smoked all of their competitor stocks, such as Walmart and Target, in that same period. Go Costco!
For more information: