Companies
Costco jumps after hours on special dividend and buyback
Costco will pay a special cash dividend of $30 a share and renewed its stock buyback, and its shares rose 1.8% in after-hours trading Tuesday.
Quick Read
- Costco plans a special cash dividend, payable Dec. 4 to shareholders of record at the Nov. 24 close.
- The board renewed its share buyback authorization through November 2030.
- The stock gained in thin after-hours trading, and such moves can fade.
- Costco's next quarterly results are scheduled for Dec. 10.
What did Costco announce?
Costco (Nasdaq: COST) said Tuesday it will pay a special cash dividend worth about $13.3 billion in total. A special dividend is an extra payout on top of the regular quarterly dividend.
Why it matters: The cash goes out on Dec. 4. Investors listed as shareholders on the company's books at the close on Nov. 24 qualify for it.
By the numbers: The board also renewed its buyback, a plan to purchase its own shares on the market. It allows purchases of up to $4 billion through November 2030.
How did the shares react?
The stock reached $1,085.68 in after-hours trading. In the regular session, Costco closed at $1,066.14.
After-hours trading happens after the regular session ends, with far fewer buyers and sellers. Moves in that thin market can shrink or reverse when full trading resumes Wednesday morning.
Even after the gain, the after-hours price sat below Costco's 52-week high of $1,094.32, the peak price of the past year.
How does this payout compare with the last one?
Costco's previous special dividend came in January 2024, at $15 a share. The new per-share payout is larger.
Costco has a market value of $470 billion. It accounts for 0.53% of the combined value of the 500 largest U.S. companies. Index funds that hold it by size would collect the dividend in proportion to their stake.
What comes next?
What’s next: The record date is Nov. 24, and payment follows on Dec. 4. Costco's next quarterly results are scheduled for Dec. 10.
The open question is how quickly Costco uses the buyback. The authorization sets a ceiling on purchases, not a commitment to make them. Later company reports may show the pace.
For readers
What it could mean for you: If you own Costco shares directly, the special dividend arrives as cash on Dec. 4, provided the shares are in your account at the Nov. 24 close. The payout lands in full on your position, with no other holdings to dilute it. The renewed buyback could shrink the share count over time, which may lift profit per share even when total profit is flat. Whether the after-hours gain holds may become clearer when the regular session opens Wednesday.
Questions and answers
How much is Costco's special dividend?
Costco said it will pay $30 a share in cash. That is larger than the special payout it made in January 2024.
When is the Costco special dividend paid?
The payment date is Dec. 4. It goes to shareholders on the company's books at the close on Nov. 24.
Did Costco renew its stock buyback?
Yes. The board renewed its repurchase authorization, a plan to buy back its own shares, which runs through November 2030.
The numbers
| Costco Wholesale (COST) price | $1,066.14 |
|---|---|
| Costco Wholesale (COST) change | 0.00% |
| Costco Wholesale (COST) market value | $470 billion |
| Costco Wholesale (COST) 52-week high | $1,094.32 |
| S&P 500 change | −0.38% |
| 10-year Treasury yield | 4.98% |
Tuesday’s close
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Not investment advice.
