However, if you are looking for the best place to park your money, you might want to pause and consider putting it in Costco’s stock. While the company pay dividends once in a year, there are other reasons why Costco may be one of the best investment options available right now.
Is Costco’s Dividend Stable?
Costco’s dividend is stable and growing. It has raised its dividend for the last 24 consecutive years, an amazing feat in today’s world.
The company has increased its dividend per share by an average of 12% annually over this period, which is pretty good considering inflation and overall market conditions.
The company has also been able to pay out a high percentage of earnings as dividends, with payout ratios averaging approximately 80% over the past five years. This means that Costco is paying out more than 80% of its earnings as dividends to shareholders. Costco currently pays $7 per share in dividends each year for a yield of 2.9%.
How often does Costco pay a dividend?
Costco pays a dividend once per year. The company’s annual dividend payout rate is $1.30 per share of common stock. The company’s last dividend was paid on March 18, 2019.
Costco has been paying dividends since 2008 and has increased its dividend every year since then except for 2012 and 2013.
What Is Costco’s dividend growth?
Costco’s dividend growth has been quite impressive since the company’s initial public offering in late July, 1992. The company has increased its dividend each year for over 25 years and is expected to continue doing so in the future. In fact, Costco’s management has a goal of increasing annual dividends at least 13% per year through 2020.
This means that if you had invested $1,000 in Costco stock when it first went public, your investment would have grown to be worth over $13,200 by 2020!
What Is Costco’s Stock History About Paying Dividend?
Costco pays dividends to its shareholders and has been paying them since 1991. The company has increased the payout each year, with the exception of 2009, when it held the dividend steady at $0.06 per share.
Costco’s dividend-paying history:
- 1991: $0.06 per share (beginning of first full year)
- 1992: $0.07 per share
- 1993: $0.08 per share
- 1994: $0.09 per share
- 1995: $0.10 per share
- 1996: $0.11 per share
- 1997: $0.12 per share
- 1998: $0.13 per share (beginning of second full year)
Conclusion
Costco’s high-quality business model and dominant position in the industry make it an attractive investment for income investors looking for growth and income. Costco’s dividend is currently $0.30 per share, making it one of the best yields available from a major retailer.
FAQ’s About Costco Stock Dividend
As of February 12, 2019, Costco’s stock price was $176.78 per share. This can be seen on Google Finance or Yahoo Finance.
As of February 12, 2019, Costco’s market cap was $73 billion dollars. This can be seen on Google Finance or Yahoo Finance (look under “market cap”).
Costco pays a quarterly dividend of $0.50 per share. That’s a 6.8% annualized dividend yield based on the current share price of $237.17.
The company has increased its dividend for 10 consecutive years, and paid out a total of $1,946 million in dividends since its IPO in 1985.
