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Costco Wholesale has consistently paid out a significant portion of its earnings to its shareholders, with a dividend yield of 0.77% as of the last reported quarter. This yield is higher than many other established companies in the retail industry.
Costco's dividend growth prospects are also promising, with a 5-year dividend growth rate of 11.5%. This indicates a consistent increase in dividend payments over time, making it an attractive option for income-seeking investors.
One notable aspect of Costco's dividend payments is the company's history of increasing its dividend payout by at least 10% annually. This streak has been maintained for several years, demonstrating the company's commitment to rewarding its shareholders.
Costco's Dividend History
Costco's Dividend History is impressive, with an average dividend payment per share of 13.64% over the past 12 months.
This is a significant return on investment, and it's worth noting that this rate has been consistent over time.
Over the past 36 months, the average dividend payment per share has been 13.59%, showing a steady growth trend.
Curious to learn more? Check out: Earning per Common Share Formula
Costco's dividend history and growth can be affected by various factors, such as profitability, cash flow, and financial stability, as well as its growth prospects and dividend payout policies.
The company's ability to maintain a high dividend yield over the years suggests a strong financial foundation and a commitment to rewarding its shareholders.
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Dividend Yield and Payout
Costco's dividend yield is a visual representation of the company's dividend yield over the last 12 months.
This graph is useful for investors to understand Costco's historical dividend yield and identify any trends or patterns in the company's dividend payments over time.
Costco Wholesale's payout ratio is a significant 114.2%, which is above the Consumer Defensive sector average of 52.1%.
This high payout ratio indicates that Costco is paying out a substantial portion of its earnings to shareholders, which may be a concern for some investors.
On a similar theme: Payout Ratio vs Dividend Yield
Yield
Costco Wholesale Corporation's dividend yield is a visual representation of its dividend yield over the last 12 months, which can be useful for investors to understand the company's historical dividend yield and identify trends or patterns in its dividend payments over time.
The current dividend yield of Costco Wholesale is 2.07%, which is below the Consumer Defensive sector average of 2.57%. This means it's 19% lower compared to its sector average.
Investors can compare Costco Wholesale's dividend yield to its historical average of 1.7% over the last 5 years.
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Payout Ratio
Costco Wholesale's payout ratio of 114.2% is above the Consumer Defensive sector, the industry and its peers average.
The Consumer Defensive sector average payout ratio is 52.1%. This means Costco Wholesale's payout ratio is significantly higher.
A payout ratio that high can be a red flag, indicating that the company may not have enough money to cover its dividend payments in the future.
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Comparing Costco to Peers
Costco Wholesale Corporation's dividend yield is 0.49%, which is lower than the sector, country, and world averages.
In comparison to its peers, Costco's dividend yield is higher than 10% of companies in its country, as indicated by its 0.1 relative value.
Let's take a look at a table comparing Costco's dividend metrics to those of its peers:
This table shows that Costco's dividend yield is lower than most of its peers, but its payout ratio is significantly higher.
Pfizer and Citigroup Ex-This Week
Pfizer and Citigroup are going ex-dividend this week, along with Costco.
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Pfizer, Costco, and Citigroup are notable companies to be ex-dividend this week.
The dividend yield of these companies can be a key factor in investment decisions, similar to comparing Costco to its peers.
Costco is joining Pfizer and Citigroup in going ex-dividend this week, a significant event for investors.
Pfizer, a pharmaceutical company, and Citigroup, a financial institution, are two of the many companies that pay dividends to shareholders.
Cost vs Peer
Comparing Costco to its peers is a great way to understand how it stacks up against other companies in the same sector. Costco's dividend yield of 0.49% is significantly lower than its peers, with Dollar General Corp boasting a dividend yield of 3.45%.
One of the most notable differences between Costco and its peers is the dividend payout ratio. Costco's payout ratio of 114.2% is extremely high, indicating that the company is paying out a large portion of its earnings as dividends. This is in stark contrast to Walmart Inc, which has a payout ratio of 34%.
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Here's a table comparing the dividend metrics of Costco and its peers:
Costco's high payout ratio is likely due to its high dividend payments, which are significantly higher than its peers. For example, Costco's dividend payments of $19.5 per share are much higher than Dollar General Corp's payments of $2.36 per share.
Costco's Dividend Policy
Costco's Dividend Policy is a key aspect to consider for investors. Costco Wholesale has been paying dividends for the last 21 years.
Costco's consistent dividend payments demonstrate their commitment to returning value to shareholders. This long history of dividend payments suggests a stable and reliable dividend policy.
The exact dividend yield of Costco is not explicitly stated in the article, but their dividend policy is a significant factor in determining this yield.
Fairness and Compensation
Costco's dividend yield is a significant aspect of its attractiveness to investors.
At 0.9%, Costco's dividend yield is relatively low compared to other stocks.
This is partly due to the company's high stock price, which makes it harder to achieve a high dividend yield.
Costco's strong financial performance and increasing cash reserves have allowed it to maintain its dividend payout ratio at around 35% over the past few years.
This means that Costco is distributing about 35% of its earnings to shareholders in the form of dividends.
Investors can expect a relatively stable dividend income from Costco, with a history of consistent dividend payments since 1986.
Costco's ability to maintain a stable dividend payout ratio is a testament to its financial discipline and commitment to returning value to shareholders.
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General Information
Costco is a membership-based warehouse club that operates over 800 locations worldwide, including in the United States, Canada, Mexico, the United Kingdom, and several other countries.
The company has been publicly traded since 1985, listing on the NASDAQ stock exchange under the ticker symbol COST.
Costco's annual dividend payout is significant, with a history of consistent payments since 1986.
Sales Up 13% as Trends Continue Higher
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Sales have been trending higher for Costco, with a notable increase in sales. This is evident in the company's decision to hike its dividend by 13%.
Costco has managed to keep its sales rising amidst the COVID-19 pandemic. The pandemic has presented challenges to many businesses, but Costco has found a way to thrive.
The company's ability to adapt and respond to changing circumstances is a key factor in its success. This is reflected in its continued growth and rising sales figures.
Costco's sales have increased by 13% as trends continue higher. This is a significant achievement, especially considering the current economic climate.
The company's ability to maintain a strong sales trend is a testament to its effective business strategies.
Wholesale
Costco Wholesale is a discount warehouse operator that rewards its customers and shareholders.
Its stock has delivered exceptional returns to shareholders over the years, with a current dividend yield of 2.07%.
Costco Wholesale's dividend yield is at its lowest level in over 15 years due to its rising share price.
The company pays dividends to its shareholders, with a current dividend yield of 2.07% and a share price of 2.55%.
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Sources
- https://www.koyfin.com/company/cost/dividends/
- https://www.dividendinvestor.com/dividend-history-detail/cost/
- https://www.dividend.com/stocks/consumer-staples/retail-consumer-staples/mass-merchants/cost-costco/
- https://fullratio.com/stocks/nasdaq-cost/dividend
- https://www.fool.com/investing/2024/09/07/what-is-the-dividend-payout-for-costco-wholesale/
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