Costco Wholesale Corporation Declares $10 Special Cash Dividend
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The company is rewarding investors with a special dividend of $10 per share.The company has paid a special dividend four times in the last eight years.
The company's regular quarterly cash dividend was announced on October 14.The closing share price on Monday was $379.
It will cost the company about $4.4 billion to make the payment."Our strong balance sheet allows us to pay this dividend, while preserving financial and operational flexibility to continue to grow our business globally," CFO Richard Galanti said.
The company reported a 15.9% increase in net sales in October.As has been the case with other retailers during the Pandemic, Costco has experienced strong e-commerce sales growth.For the month of October, it said comparable online sales grew more than 91%.The surge began during the Pandemic.e-commerce sales grew 50% for the full fiscal year.
Since the beginning of 2020, shareholders have been rewarded with a 32% gain in the stock price.The number of memberships reported by the company as of August 30 was 105.5 million.That is an increase from the previous year.Sales have grown by 9.3% in that time.The company is in a position to create long-term shareholder value, according to Galanti.