Over the last five years, Costco Wholesale (COST -1.91%) shareholders have been rewarded through a soaring stock price, which has climbed over 130% as of this writing. But they've also been rewarded by something else during that time frame: a special dividend payout.
In 2024, Costco paid a hefty special dividend of $15 per share. There isn't a clear pattern for when the company pays a special dividend, but given its assets and payout history, another special dividend may not be too far off.
Image source: Getty Images.
Costco's history of special dividend payouts
Unlike its current quarterly dividend, Costco's special dividend is more sporadic.
|
Payable Date |
Payout |
|---|---|
|
12/18/2012 |
$7 per share |
|
2/27/2015 |
$5 per share |
|
5/26/2017 |
$7 per share |
|
12/11/2020 |
$10 per share |
|
1/12/2024 |
$15 per share |
Source: Costco investor relations.
After looking at the payouts from the last few years, some patterns emerge. The first is that, outside 2017, most special dividends were paid near the start or end of a year.
The second is that those payouts have been made every two to four years. The quickest was two years, with a special dividend paid in 2015 and then again in 2017. The longest time between special dividend payouts has been four years, when one was paid in 2020 and not again until 2024.
None of these offers an exact time frame for when Costco will pay another special dividend. But a payout in 2026 would fit part of that pattern, as it would mark two years since the last payout in 2024.
What's also offering optimism is that the retailer is well capitalized to make the payout. Costco is sitting on roughly $20 billion worth of cash, cash equivalents, and short-term investments.
NASDAQ: COST
Key Data Points
Looking at total returns for Costco
When that special dividend is paid out, it's a nice reward for shareholders. For example, in 2024, for anyone who owned 100 shares, that $15 payout per share gave them a special dividend of $1,500.
That special dividend, however, also points to why it's beneficial to consider Costco as a long-term investment. There's no guarantee when a special dividend will occur, so instead of playing a guessing game, investors who believe in Costco can just hold the shares and not worry about when one might be paid out.
For a long-term shareholder, that special dividend will also help boost total returns, which include Costco's quarterly dividend payout and potential stock price appreciation.
