On April 15, Costco Wholesale (COST -1.83%) raised its quarterly dividend from $1.30 to $1.47 per share, an increase of roughly 13.1%. Yearly, the new rate comes out to $5.88 per share. How much does that get you if you buy $10,000 in Costco stock today?
NASDAQ: COST
Key Data Points
What $10,000 in Costco stock pays you in dividends
Shares are trading around $960, so a $10,000 investment buys you roughly 10.4 shares -- you can buy fractions of shares these days through most brokers. That means your $10,000 investment yields just over $61. That works out to a dividend yield of 0.61%.
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It's not all that much, but Costco does have a habit of offering special one-time dividends. Since 2012, the company has declared five, with the most recent coming out to $15 per share in 2024. Another could be on the way soon.
Costco's yield doesn't tell the whole story
Costco isn't the best stock if you're after regular income -- but that doesn't mean it isn't a good investment. Costco's business is humming. Its stock is definitely far from cheap, but even with an elevated valuation, I think it's a buy for long-term holders.
