Costco announced yesterday that they will be increasing the quarterly dividend for shareholders. The dividend will rise from $0.355 per share to $0.40 per share. That is an increase of right around 14%, which is excellent. On an annualized basis, this represents an increase from $1.42 to $1.60 per share. This increased dividend will be paid out on May 15, 2015, but only for shareholders of record by close of business on May 1, 2015.
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 $0.40, or 150%. Similarly, the share price has increased quite a bit too in that time, going from $69.43 (April 18, 2008) per share to the current price of $144.57, an increase of $75.14 per share. Go Costco!
Also in this latest news from Costco, was an announcement that the Board has reauthorized a common stock repurchase program of up to $4 billion. This is a replacement for their current $4 billion repurchase program that expires this month; it has unused authorization of approximately $2.5 billion.
For more information: