Costco Crushes Forecasts, Declares Special Dividend.

Costco Wholesale Club, the membership warehouse giant, delivered a hefty dose of holiday cheer this week with its fiscal first quarter results, record stock prices, and a surprise $15 per share special dividend.

Net sales rose by 6.1%, reaching $56.72 billion compared to the same period last year ($53.44 Billion).

Notably, comparable sales increased across various regions, with the U.S. seeing a 2.0% rise and other international markets displaying double-digit growth. Net income for the quarter stood at $1,589 million, with earnings per share (EPS) at $3.58, showcasing a healthy financial performance.

The cherry on top of this festive news is the unexpected $15 per share special dividend, payable to shareholders on January 12th, 2024, provided they own shares by December 28th, 2023 market close. This generosity translates to a hefty payout of approximately $6.7 billion and marks Costco's largest special dividend ever, surpassing the previous special dividends paid in 2012 ($7), 2015 ($5), 2017 ($7), and 2020 ($10).

Fueled by the positive earnings report and the announcement of the special dividend, Costco's stock price surged to a record high of $658 on December 15th. This marks a significant increase of over 16% from just two months ago.

This post was originally published on The Digi Learners.

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