Costco declares $3.1B special dividend

ISSAQUAH, Wash. —  Costco declared a special cash dividend on Costco common stock of $7 per share, payable May 26, to shareholders of record at the close of business on May 10. The aggregate payment will be approximately $3.1 billion.

The special dividend will be funded primarily through additional borrowings. The special dividend will be in addition to the Company’s regular quarterly cash dividend of 50 cents per share that was also declared, which will also be payable on May 26 to shareholders of record at the close of business on May 12, 2017. This amount represents a quarterly increase of 5 cents per share.

“Today’s announcement of a $7 special dividend is our latest step in returning capital to our shareholders,” said Richard Galanti, EVP and CFO. “Our strong balance sheet and favorable access to the credit markets allow us to provide shareholders with this dividend, while preserving financial and operational flexibility to continue to grow our business globally. Costco will continue to be in a financial position allowing us to take care of our employees, enhance the value of the Costco membership, and create shareholder value over the long term.”

Costco currently operates 729 warehouses, including 508 in the United States and Puerto Rico.